ANZ Research likes buying the USD on further dips.
"Fed Chair Powell’s comments ignited a risk rally this week, pushing the DXY below 105 and breaking the 200-day moving average for the first time since the middle of 2021. Weaker than anticipated personal consumption and labour market data also bolstered the USD’s decline. We see a decent probability that equities momentum can continue until the next US CPI report on 13 December," ANZ notes.
"The DXY retracement has moved further and faster than many anticipated. We think further positioning-driven downside, perhaps following non-farm payrolls, could be an opportunity to reset tactical longs in the USD, or short AUD ahead of the RBA next week," ANZ adds.