2023.12.2014:11:00UTC+00U.S. Dollar Rebounds Against Most Majors

The U.S. dollar advanced against its most major counterparts in the New York session on Wednesday, after falling in the previous session on hopes of interest rate cuts next year.

Richmond Fed President Thomas Barkin said on Tuesday that the U.S. central bank would lower interest rates if recent progress on inflation continued.

However, other policymakers including Chicago Fed President Austan Goolsbee and the Cleveland Fed's Loretta Mester have pushed back on expectations of rate cuts.

Atlanta Fed President Raphael Bostic said there was no urgency to lower rates.

U.S. consumer confidence data is due at 10.00 am ET. The index is expected to rise to 104 in December from 102 in the previous month.

The core personal consumption expenditures price index, the Fed's preferred measure of inflation, will be published on Friday.

The greenback rebounded to 1.0934 against the euro and 0.8651 against the franc, from an early low of 1.0983 and near a 5-month low of 0.8591, respectively. The greenback may find resistance around 1.06 against the euro and 0.90 against the franc.

The greenback recovered to 0.6757 against the aussie and 1.3350 against the loonie, from an early nearly 5-month low of 0.6777 and a 4-1/2-month low of 1.3325, respectively. The currency is poised to find resistance around 0.66 against the aussie and 1.37 against the loonie.

The greenback touched 1.2629 against the pound, setting a 2-day high. It is likely to locate resistance around the 1.24 level.

In contrast, the greenback weakened against the yen, reaching 143.26. The currency may possibly face support around the 139.00 level.

The greenback remained lower against the kiwi, after falling to a 5-month low of 0.6294 in the previous month. If the greenback falls further, it is likely to test support around the 0.66 region.