US Dollar Stuck as Equity Markets Rally on China’s Stimulus

The US Dollar Reacts to Chinese Stimulus Plans

• The US Dollar remains steady as Asian markets respond positively to China’s 500 billion Yuan liquidity injection.
• Equity markets are optimistic about China’s economic reboot efforts.
• The US Dollar Index shows minimal movement, staying within September’s trading range.

The US Dollar is experiencing a mix of reactions following China’s recent measures to revitalize its economy. The injection of 500 billion Yuan and the liquidity support from the People’s Bank of China have boosted the Chinese Yuan by nearly 0.50% against the US Dollar during Tuesday’s Asian trading session.

Looking ahead, key economic events include the release of the Richmond Fed Manufacturing Index for September and insights from Federal Reserve Governor Michelle Bowman on the US economic outlook and monetary policy.

Daily Market Updates and Key Events

• UN emergency meeting on Lebanon after recent bombing incidents by Israel.
• Speech by Federal Reserve Governor Michelle Bowman on US economic outlook.
• Release of Housing Price Index for July and Richmond Fed Manufacturing Index for September.
• Consumer Confidence reading expected to improve.
• Global equity markets showing positive momentum.
• Market pricing in potential rate cuts by the Federal Reserve in November.
• US 10-year benchmark rate approaching September highs.

US Dollar Index Technical Analysis

The US Dollar Index appears stagnant, hovering near yearly lows despite interest rate differentials. Traders await further data to determine the next direction for the index.

Key levels to watch:

• Resistance levels at 101.90 and 103.18.
• Support levels at 100.62 and 99.58.

Charts indicate potential movements based on technical analysis, with key levels highlighted for traders to monitor.