📝Recommend DXY Longs @ 105.55, Stop @104.90: Westpac Strategy

We recommend DXY longs at 105.55, near last week's lows, targeting fresh highs at 108.00, with a stop at 104.90. We favour entering on pullback given that the USD has not capitalised on the latest break higher in US yields after strong retail sales. We anticipate the US's strong Q3 GDP, resilient payrolls and sticky CPI will bleed into Q4, making a case for more aggressive 13 Dec FOMC market pricing, currently +11bp. That scenario likely sees US yields test 5% and ushers in another leg higher for DXY. - Westpac Strategy