Today, the Asian session has started with several pieces of news. For example, futures on the main US stock indices are gradually declining after a stellar rally triggered by expectations of final inflation data for October. Asian stock indices are also falling amid mounting problems in China's construction sector and surging factory-gate prices.
There are many topics to discuss! Let's get cracking!
The situation with the US dollar index is a bit complicated. Its trajectory now depends on two factors: the reduction of asset purchases and a drop in demand for risky assets. Besides, if inflation remains high, the regulator is highly likely to hike the key rate earlier than planned. On top of that, the Fed has already announced the tapering of the QE program. All these factors may strengthen bullish sentiment across the market, pushing the US dollar higher. Meanwhile, the index may grow to 95-96. Technical indicators also confirm this scenario. However, the US dollar is still far away from those levels. Now, it is trading at around 94.1. The nearest target is likely to be the 94.3 level. The US currency may even reach this level today.
As for the dollar/yen pair, it managed to break through the support level yesterday, dropping to 112.80. Currently, many traders believe that the price is performing a reversal on the chart. However, some experts doubt it. Technical indicators signal a decrease to 112.80 and lower. Probably, now we see only a temporary correction. So, the pair may decline up to 112. If so, the yen may gain momentum.
The Aussie may soon face a trend reversal. Bulls are running out of energy. This is why it will be quite difficult for the price to reach the target level of 0.7330. Now, the pair is trading not far from this level near 0.7364. A trend reversal is likely to occur somewhere in the middle. Traders need to be prepared for such a scenario. Besides, the market is oversaturated with sales. This also might be the main reason for a reversal.
Let's sum up. Investors are anticipating the publication of a butch of US economic reports on consumer prices. This data is sure to fuel discussions about possible measures of the regulator to curb rising inflation. This is why it is better to stay focused and watch closely the market situation. Do not miss our next video review! See you!

00:00 Intro
00:34 USDX
01:38 USD/JPY
02:12 AUD/USD
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