DXY: Market attention centers on FOMC – OCBC

Ahead of the FOMC meeting, the US Dollar weakened, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Dot-plot and the voting split are a center of attention

"This softness came despite stronger-than-expected US economic data: both retail sales and industrial production surprised to the upside, reinforcing expectations for a solid third quarter (Q3) US GDP print. Notably, Federal Reserve Bank of Atlanta’s GDPNow upwardly revised its Q3 annualised growth estimate to 3.4%, from 3.1% previously."

"While a rate cut at tonight’s FOMC meeting is widely viewed as a given, market attention will centre on two key elements: the dot-plot and the voting split among committee members. Resistance for the DXY sits at 97.40 and 98.10 (50 DMA). Support is at 96.40, 95.20 levels."