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Forex Today – Asian Session: The Dollar extends its fall, risk appetite prevails

During the Asian session, New Zealand will release trade data and the Reserve Bank of Australia will release minutes from its latest meeting. Later, Canadian inflation data and the Federal Reserve’s FOMC minutes will be released.

Here’s what you need to know on Tuesday, November 21:

The US Dollar Index (DXY) continued to fall and settled at 103.45, reaching its lowest level since late August. Risk appetite and lower Treasury yields weighed on the Dollar. In the short term, the Dollar remains vulnerable even though the US economy is growing, while the Eurozone and other economies are approaching recession.

Regarding economic data, existing home sales and the Chicago Fed’s national activity index will be published on Tuesday in the United States. The Federal Reserve (Fed) will publish the Minutes of its last meeting.

EUR/USD extended its gains above 1.0900 to the 1.0950 area. The bias is bullish, but technical indicators show overbought conditions that could point to consolidation before another leg higher.

The GBP/USD pair It surpassed the 1.2500 zone, surpassing the 100-day simple moving average (SMA). The pair maintains a bullish bias due to the weakness of the US dollar. On Tuesday, Bank of England Governor Bailey and members of the Monetary Policy Committee will face lawmakers to discuss the Monetary Policy Report.

Likewise, the USD/JPY pair continued its downward trend for the third consecutive day, accumulating a decline of more than 300 pips. The pair fell towards 148.00 and remains under pressure.

The AUD/USD pair jumped and broke above 0.6550, hitting new monthly all-time highs. The next significant resistance lies at 0.6600. Reserve Bank of Australia (RBA) Governor Michele Bullock will deliver a speech on Tuesday. The RBA will also publish the minutes of its latest meetings.

The USD/CAD pair posted modest gains, and the Canadian dollar was one of the worst performers, even despite crude oil’s recovery. The pair faces resistance at 1.3770 and is supported by the 55-day SMA at 1.3660. Canadian data due out on Tuesday will show whether inflation continues to approach the 2% target or whether new pressures emerge. The Federal Government will publish an Economic Statement.

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Source: Fx Street

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