Greenback’s Brief Recovery and Persistent Downtrend

At 08:40 ET, the Dollar Index increased by 0.2% to 99.012, recovering some of last week’s losses after dropping to a three-year bottom. Despite this fluctuation, the Index remains down 4.6% for April, marking its most significant monthly decline since November 2022.

Analysts at Bank of America Securities highlighted that last week’s dollar rebound occurred during U.S. trading hours, but structural dollar supply issues re-emerged in Asia, indicating that the current uptick may be short-lived.

Targeting AUD/USD with Fading Dollar Rallies

BofA suggests fading dollar recuperations and focusing on AUD/USD for potential gains. This pair has rebounded to around 0.64, remaining within its recent trading range—unlike EUR/USD and USD/CAD, which have shown more pronounced movements. Key drivers for AUD strength could include:

• Positive sentiment in AUD based on options activity

• A prospective upside surprise in Q1 Australian CPI

If these forecasts materialize, AUD/USD could surpass 0.64 and test the 200-day simple moving average situated around 0.6462.

Investors can smoothly track both intraday and daily foreign exchange fluctuations—especially for AUD/USD—using the Daily Forex API, which provides updated rates across major currency pairs.