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EUR/USD, GBP/USD, AUD/USD, USD/JPY – U.S. Dollar Pulls Back From Session Highs

By:
Vladimir Zernov
Published: Jan 24, 2023, 16:25 UTC

U.S. dollar is swinging between gains and losses as traders react to the better-than-expected U.S. PMI reports.

U.S. Dollar

In this article:

Key Insights

  • U.S. dollar received some support after the release of PMI data but failed to develop sufficient upside momentum. 
  • GBP/USD made an attempt to settle below the 1.2300 level. 
  • USD/JPY pulled back towards the 130 level. 

U.S. Dollar (DXY)

U.S. Dollar
DXY 240123 Daily Chart

U.S. dollar made an attempt to rebound after the release of PMI reports, which indicated that rising prices continued to put pressure on businesses. However, the American currency failed to develop sufficient upside momentum and pulled back.

Meanwhile, Treasury yields moved lower, which served as a bearish catalyst for the U.S. dollar. In case the U.S. Dollar Index settles below the 102 level, it will move towards the recent lows near 101.50.

EUR/USD

EUR/USD
EUR/USD 240123 Daily Chart

EUR/USD is currently trying to settle above the resistance level at 1.0870. Today, traders focused on PMI reports.

Euro Area Manufacturing PMI improved from 47.8 in December to 48.8 in January, while Euro Area Services PMI increased from 49.8 to 50.7. Both reports exceeded analyst forecasts but did not provide significant support to the European currency.

GBP/USD

GBP/USD
GBP/USD 240123 Daily Chart

GBP/USD has recently made an attempt to settle below the 1.2300 level as traders reacted to the disappointing Services PMI data from the UK. UK Services PMI declined from 49.9 in December to 48 in January, compared to analyst consensus of 49.7.

Yesterday, GBP/USD faced significant resistance at multi-month highs near the 1.2450 level, and it will likely need strong catalysts to move above this level.

AUD/USD

AUD/USD
AUD/USD 240123 Daily Chart

AUD/USD continued to move higher and tested the 0.7050 level. RSI remains in the moderate territory, and there is enough room to develop additional upside momentum in case the right catalysts emerge.

Meanwhile, NZD/USD tested the 0.6500 level, while USD/CAD made an attempt to settle below the strong support level at 1.3350.

USD/JPY

USD/JPY
USD/JPY 240123 Daily Chart

USD/JPY faced resistance near the 20 EMA at 130.85 and pulled back towards the 130 level. Japan’s Manufacturing PMI missed expectations and showed that manufacturing activity remained under pressure, while Services PMI increased from 51.1 in December to 52.4 in January. Most likely, traders will stay focused on the expectations for the BoJ policy.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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