04.01.2024: USD cannot keep winning? JPY remains depressed. USDX, USD/JPY, AUD/USD, NZD/USD

Nevertheless, just a slight decline in expectations of an early rate cut by the US Federal Reserve was enough for the dollar to lose its upward momentum and launch a correction. Today, the US dollar retreated from the levels it reached in the early days of the new year. For example, against the basket of six main currencies, the greenback rose to a 3-week high of around 102.7 points yesterday. However, the publication of the Fed's minutes as well as data on job openings and manufacturing PMI changed the situation. The data confirmed the cooling of the labor market and a decrease in manufacturing prices by 4.7%. In addition, FOMC Member Thomas Barkin said on Wednesday that the expected soft landing was "increasingly possible." Therefore, the market prefers to wait for the key report, which is Non-Farm Payrolls for December. The data is slated for release tomorrow. Today, the US dollar index continues to decline moderately, consolidating in a narrow range of 102.2–102.5 points. In the case of a new bullish rebound, it can test technical resistance at around 102.6 points. Support levels are located at 101.7 and 100.7 points. The Japanese yen also consolidated after the US dollar. As we can see on the trading chart, the pair has been rising since the onset of the year. The US dollar managed to reach almost a 2-week high against the yen on Wednesday, marking the best performance since October. Early on Thursday, the yen increased within the range of 142.8–143.9. However, during the Asian session, the pair’s movement was determined by the greenback’s appreciation. The yen was trading below 143.5 amid the dollar’s consolidation. However, the overall bullish impulse may push the price to a technical resistance level of 144.7. The first support level is seen at 142. The publication of Japanese manufacturing PMI also exerted pressure on the yen. The indicator showed the sharpest drop to 47.9 points since February. What is more, sales in the foreign market slumped more than in the recent six months amid a smaller number of orders from the main export markets, namely, China, Europe, and North America. Today, Bank of Japan Governor Kazuo Ueda also commented on the future actions of the central bank. He hopes that salary growth and inflation will reach a balance. Although some traders still believe that the Bank of Japan will switch to a more aggressive approach, at the upcoming meeting scheduled for January 22–23, the regulator will hardly announce any changes. This could be mainly explained by gloomier market sentiment and the yen’s depreciation amid the powerful earthquake that took place in the western part of the country early this week. The Australian dollar was also trading downward during the recent 24 hours after its New Year’s growth. Early today, it attempted to consolidate near the upper limit of the range of 0.671–0.676 dollars amid fresh macroeconomic reports from China. According to the data, business activity in the world’s second largest economy advanced at the fastest pace in December compared to the previous five months. What is more, during the Asian trade, the Australian dollar benefited from the greenback’s correction and a surge in commodity prices caused by geopolitical tension. From a technical point of view, the Aussie/dollar pair is under bearish pressure. That is why it may approach the nearest support level of 67 cents. The resistance levels are located at 0.677 and 0.687 dollars. The New Zealand dollar is also often used as an indicator of risk sentiment in the currency market. Today, it was hovering near its 2-week low near 0.627 dollars. The intraday range of 0.623–0.629 may remove its limits towards the technical support level of 0.622 amid the overall bearish impulse. If risk sentiment increases, the New Zealand dollar may test the resistance area of 0.629–0.636 dollars. 00:00 Intro 00:32 CME FEDWATCH TOOL 01:28 USD Index 02:46 USD/JPY 03:35 JAPAN MANUFACTURING PMI 04:00 Kazuo Ueda 04:38 AUD/USD 05:34 NZD/USD https://www.instaforex.com FX Analytics - https://www.instaforex.com/forex_anal... Forex Calendar - https://www.instaforex.com/forex_cale... Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv Forex charts - https://www.instaforex.com/charts Instant account opening - https://www.instaforex.com/fast_open_... Forex Trading Contests - https://www.instaforex.com/forex_cont... List of official InstaForex blogs:   / instaforex     / instaforex     / instaforex   #forex_news # asian_session #instaforex_tv