Dollar loses some ground as stocks nudge higher

Technical Analysis

The dollar slips to its lowest levels on the day

The more upbeat German manufacturing PMI data earlier is helping to give regional stocks a broader lift and in turn that is translating to some weakness in the dollar now.

This also comes as the euro is nudging a little higher and buyers have seized back near-term control in the EUR/USD pair, now trading at a session high of 1.1835.

European equities are now posting gains of close to 1% across the board while US futures have turned around a slight loss to gain by ~0.2% on the session.

Elsewhere, cable is now up to a session high of 1.3100 with USD/JPY also seen lower at 104.60. For now, keep a watchful eye on AUD/USD as it retests its earlier high today:

The region around 0.7137-39 helped to stall gains earlier but buyers are keeping a more bullish bias – above the 200-hour MA (blue line) – and a firm break above that and the 50.0 retracement level @ 0.7132 could pave the way for a push back towards 0.7200.

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