Forex Today: Dollar extends correction, focus turns to PMIs

The preliminary November PMIs are due on Thursday, starting with Australia and then moving to Europe. US markets will be closed due to Thanksgiving Day. The European Central Bank will release the minutes of its latest meeting.

Here is what you need to know on Friday, November 24:

Data from the US released on Wednesday came in mixed, with Jobless Claims falling more than expected. Initial Claims decline to 209,000 from 233,000, and Continuing Claims pulled back after seeing increases for eight consecutive weeks, declining to 1.84 million. Durable Goods Orders fell 5.4% in October, exceeding the expected 3.1% decline. On the positive side, the University of Michigan Consumer Sentiment Index stood at 61.3 in November, revised up from the preliminary reading of 60.3.

The US Dollar rose after the economic reports, extending its correction and lost momentum, affected by higher equity prices. The US Dollar Index (DXY) rose 0.30%; it reached a peak at 104.20 but closed around 103.90. The US market will remain closed on Thursday (Thanksgiving Day), and Friday will have a shortened trading session.

EUR/USD continues to move with a bearish bias in the short term, with a trendline awaiting at 1.0900 and the next strong support at 1.0830. The preliminary November Eurozone PMIs are due on Thursday, and the European Central Bank (ECB) will release the minutes of its latest meeting. The economic figures will be closely monitored.

GBP/USD bottomed near 1.2450 and then rebounded toward 1.2500 after the US Dollar's momentum faded. There was a modest reaction in the Pound to UK government's presentation of the Autumn Statement, that included a cut in national insurance by 2 percentage points.

USD/JPY rose sharply as the 10-year Treasury yield rebounded from monthly lows, rising from 4.35% to 4.42%. The pair climbed to 149.75, marking a 260-pip rise from Tuesday's lows.

NZD/USD retreated further after approaching the 200-day Simple Moving Average (SMA) but settled above 0.6000. The overall bias remains to the upside.

USD/CAD continues to move sideways, with the risk starting to favor the downside as price faced resistance at the 20-day SMA and fell under 1.3700. A break below 1.3660 would open the doors to further losses.

AUD/USD also lost ground but found support around the 0.6520 area, a relevant technical zone. The upside remains capped by the 200-day SMA, slightly below 0.6600. The Judo Bank PMI is due on Friday.

Gold failed to hold above $2,000 and dropped to $1,986. The main trend is up, but prices need to break $2,010 to open the doors to more gains.

Crude oil prices dropped just 1% in a volatile session influenced by the OPEC+ postponing its meeting. WTI bottomed at $73.80 and then rebounded back to $76.85.

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