Dollar exchange rate movements comments September 6, 2010
USD/HKD has downward bias in wider USD-bearish trend; Friday''''s close below 55-day moving average at 7.7736 suggests new down-wave has begun for USD/HKD; may extend to 7.7595 (August low) in days ahead. 'The broad USD weakness and the technical resistance of 7.78 weighed; stronger local equities and improving risk sentiment will support the local unit,' says HK based trader. HK fundamental data also support firmer HKD; Aug PMI rose to 52.3 from 51.3. 'PMI delivered good news on multiple fronts; overseas demand for HK business output remains robust,' says HSBC. Dow Jones technical analysis shows initial support at 7.7695 (Friday''''s low), then 7.7595 (Aug trough). Initial resistance at 7.7876 (July 9 peak), above at 7.7968 (July high).
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