Dollar sits tentatively lower in European morning trade

The dollar is only sitting higher against the yen today but even then, USD/JPY has trimmed its advance from around 150.05 earlier to 149.80 now. Elsewhere, the dollar is down 0.3% against both the euro and the pound. EUR/USD is up to 1.0525 while GBP/USD is up to 1.2690 levels with buyers seizing back near-term control.

The bounce in cable as seen above comes amid a test of its 200-hour moving average (blue line) yesterday. So, it points to a push and pull sort of start to December trading thus far.

Somewhat similarly, AUD/USD also saw a test of its recent lows around 0.6433-50 yesterday before rebounding back to 0.6500 currently. The pair is also trading back both above its 100 and 200-hour moving averages of 0.6493-96 now.

There’s no major headlines driving the moves today signal an ebb and flow to the early December moves. It reflects a more tentative sentiment to the dollar gains from yesterday but even with the drop today, we’ll still have to wait on US data this week to really validate any of the short-term moves.

As for the month as a whole, just be wary that December tends to be a bad month for the dollar in general in recent years.

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