Core Viewpoint - The US Dollar Index increased despite a 25-basis-point rate cut, indicating that the cut was anticipated prior to the decision, while Chair Powell's comments shifted the policy outlook to a more data-dependent approach [1] Currency Movements - DXY approached a significant resistance level, with EUR/USD and GBP/USD declining towards recent lows; USD/JPY gained further as the BoJ did not indicate imminent rate hikes [2] - Commodity currencies showed mixed performance, with CAD benefiting from stronger crude prices and a resilient US risk tone, while AUD and NZD lagged due to cautious sentiment in Asia [2] Market Signals - Cross-asset signals supported the dollar's strength, with US equities achieving a third consecutive weekly gain and closing a sixth positive month, driven by strong performances from major companies like Alphabet and Amazon [3] - The trade war climate improved following President Trump's trip to Asia and a truce on rare earths/minerals with President Xi [3] Currency Pairs Analysis - EUR/AUD is forming a broadening megaphone pattern, potentially indicating a long-term top, with a recent lower high and a retest of previous lows; a break below 1.75600 could signal sustained weakness [4][6] - AUD/SGD has rebounded from 0.83420 support and is testing previous resistance at 0.55520; a breakout could lead to a medium-term rally towards 0.87260 [7][9] Economic Indicators and Outlook - The ongoing government shutdown affects near-term economic indicators, with focus on ISM surveys, FED speeches, and ADP data; Powell's comments on a December cut suggest that a strong ISM report could bolster dollar strength and pressure EUR/USD towards October lows [10] - Upcoming economic events include US ISM manufacturing and services, ADP data, CHF CPI, and central bank meetings for RBA and BoE, with traders closely monitoring AUD and GBP for potential volatility [11]