Weighing on the market after the sequester, the US Dollar have been quite resilient with minor pullbacks even to this writing. It has managed to maintain at the higher end of the charts with bullish sentiments much in place.
However, as most reports say that this is just the beginning and a negative outlook is expected. Jobs, working hours would be cut and would definitely make a huge dent on the slow growing US economy. The reaction of the majors have been subtle for now with prices recovering across the board. Although, most analyst and traders would likewise be waiting for the end of the month for some fresh incentives. But almost all analyst is bearish for Cable which has pressured the market in spite of today's relief recovery
It was only the Aussie Dollar that has managed to recovery with significant grounds versus the US Dollar as it moves higher @1.0239 touching its 14day-EMA from a low parity price level @1.0114. This would be a temporary reaction from the RBA news of holding rates unchange and technically providing a relief from selling pressures. However,there will be a re-test of the earlier lows in the mid-term before a new trend reversal can be declared. Key price to watch is still the 1.0305/10 levels of its trendline resistance.
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