18.11.2020: What's holding traders back? Outlook for USDX, USD/JPY, AUD/USD

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Market sentiment is worsening. Optimism triggered by the news about the development of the coronavirus vaccines is fading away, especially after yesterday's comment made by Christine Lagarde. She said that an effective coronavirus vaccine would not be a game-changer for the European Central Bank’s economic projections as a medical solution was already factored into the forecasts.
Fed Chairman Jerome Powell echoed Lagarde’s opinion, saying that the US economy has a long way to go before fully recovering from the pandemic. He also added that the next few months could be very difficult. His gloomy words were confirmed by yesterday's statistics that showed a deterioration in consumer activity.
In October, retail sales in the United States increased by only 0.3%, while analysts had forecast a rise of 0.5%. The September reading was revised downwardly to 1.6% from 1.9%. Consumer spending is likely to fall even more in the coming months against the background of quarantine restrictions aimed at curbing the spread of coronavirus. Besides, the expiration of unemployment insurance payments may also have a negative effect on consumer activity.
The US dollar index, which measures the strength of the greenback against a basket of six major currencies, declined to the support level of 92.20.
Market sentiment in the Asian Pacific region remains positive after large Asian countries have signed the Regional Comprehensive Economic Partnership agreement. This is the largest regional free trade agreement in the world between the countries of the Asia-Pacific region. Despite Japan’s weak figures for imports, exports, and trade balance, the yen is gaining momentum against the US dollar. The dollar/yen pair dipped below the support level of 104.05. Technical analysis experts suggest that the pair may drop to the next bearish target at 103.18.
Judging by the movement of the AUD/USD pair, traders are struggling to foresee a trend for the pair. Market participants refrain from opening either long or short deals. For this reason, the pair is fluctuating between the levels of 0.7264 and 0.7340. So, its future trajectory will be determined by the level the pair will be able to break.

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