DXY: On the backfoot – OCBC

US Dollar (USD) continued to ease away from its recent high. DXY last at 98.60 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Downside risks in the interim

"Temporary respite in risk sentiment, pullback in UST yields and US government staying shut (with little urgency of reopening) were some factors weighing on USD. Elsewhere, stronger JPY, EUR and RMB also saw spillover influence."

"On Fedspeaks, Miran said recent trade tensions have increased uncertainty in the outlook for growth, making it more important for policymakers to lower interest rates quickly."

"Bullish momentum on daily chart faded while RSI fell. Downside risks in the interim. Support at 98.40 (38.2% fibo) and 98 levels (21, 50 DMAs). Immediate resistance at 99.10 levels (50% fibo retracement of May high to Sep low), 99.80 (61.8% fibo), 100.20 levels."