Dollar recovers some poise with month-end, quarter-end approaching

And on the week itself, the greenback is now trading more mixed heading into the new day in Europe. The changes today are light but here is how things are playing out so far on the week:

The commodity currencies are still well ahead, with risk trades continuing to stay more buoyed. Wall Street did get a minor setback yesterday but US futures are pointing higher again today. S&P 500 futures are up 0.5% with Nasdaq futures up 0.8%.

And in the case of the aussie and kiwi, they were also key beneficiaries to more positive sentiment surrounding China earlier in the week.

The Japanese yen is the laggard this week with USD/JPY even moving up to test the 145.00 mark today. The nudge higher today also sees the pair move up to test the 23.6 Fib retracement level of the swing lower since July, seen at 144.85.

If sellers are to make a stand, those technical levels are good resistance points to lean on in making their argument.

As for the euro, it is once again facing a rejection near 1.1200 – similar to August.

The economic calendar today will be highlighted by Fedspeak mostly as Eamonn pointed out here. There will also be some US data before looking towards the PCE price index tomorrow.

But keep in mind, that we’re also approaching month-end and quarter-end now. So, there might be rebalancing flows to consider as part of the equation. These are never clear cut nor set in stone but they might muddy price action and movements in broader markets a little. So, do keep that in consideration in your trades.

This article was written by Justin Low at www.forexlive.com.