Weekly Forex Analysis

AUD/USD struggles above 0.7100 despite upbeat China Caixin Manufacturing PMI The U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.11% to 93.535 by 9:47 AM ET (2:47 GMT). the greenback hit a speed bump as there were some technical signs of being over-bought in the near-term and with speculators’ long position hitting a record level. “But the dollar’s decline is likely to continue. Real U.S. interest rates are declining even as the country is running a big current account deficit, a situation we hadn’t have for a long time. Dollar on defensive as U.S. recovery story in doubt By Hideyuki Sano TOKYO (Reuters) - The U.S. dollar ticked up in early Monday trade, clinging to its rebound late last week, but mounting concerns about a slowing U.S. economic recovery from coronavirus epidemic kept a lid on gains. The dollar rose 0.3% to 106.20 yen , having gained almost 1% on Friday thanks in part to month-end buying following its dive into a 4-1/2-month low of 104.195. The euro also shed 0.3% to $1.1744 (EUR=), off Friday's two-year high of $1.1908. The common currency hit a speed bump as there were some technical signs of being over-bought in the near-term, and with speculators' long position hitting a record level, said Minori Uchida, chief currency analyst at MUFG Bank. "But the dollar's decline is likely to continue. Real U.S. interest rates are declining even as the country is running a big current account deficit, a situation we hadn't have for a long time,"