U.S. Dollar weakness continues to push AUD/USD and USD/CAD

The U.S. Dollar pushed slightly higher on the back of the better-than-expected Empire State Business Conditions Index.

The forecast number was 13.0 and the actual came in at a whopping 28.8. This number initially caused little reaction higher from the U.S. Dollar and then sluggishly the buyers came in to buoy the dollar to a 78.128.

The dollar has since been sent down sharply as it tests 78.00 psychological support – again. The morning’s low and support are waiting at 78.93 – 78.94. There is little reason to think that the dollar may not eventually test the 78.65 low set on September 28th as long as rate cuts are still being considered.

In the meanwhile, the USD/CAD and the AUD/USD continue to trend on the dollar weakness. USD/CAD has already reached parity as prices are currently trading 0.9735. The AUD/USD is trending higher at 0.9058 and while parity is still not a near term reality, there is are opportunities in both pairs for traders.

The USD/CAD pair continues to head lower as the Canadian Dollar strengthens versus the U.S. Dollar. 0.9700 is psychological support as 0.9699 and 0.9700 have been tested.

The AUD/USD continues to climb higher with and with 0.9000 broken and now support, today’s trading has brought a new high of 0.9078 just 22 pips shy of the 0.9100 level.

The U.S. Dollar is currently support by 78.00 on the daily chart but the downward pressure at each bounce is still a relevant concern for dollar bulls.