OCBC Bank: Dollar index in search of catalysts to break out of current range

OCBC analysts think that the dollar index may require further catalysts to jolt out of a 96.50-97.50 range on a multi-session horizon, after it tripped below 97.00 level on Friday.

Key Quotes

“Any further improvement in risk appetite levels stemming from Sino-US front may be limited to cyclicals & EM/Asia although soggy global macro undercurrents may remain potential threats to investor sentiment.”

“To this end, a heavy EURAUD or $EURAsia (selectively) may prove more fruitful from a tactical viewpoint instead.”