Dollar Rebounded as Focus Turned to Eurozone Debt, China and Yields A couple of factors boosted dollar last week and sent the dollar index through near term resistance of 78.36. Firstly, there were persistent speculations on Eurozone debt crisis that gave much pressure to Euro and pulled EUR/USD back below 1.37 level. Secondly, weak bond auctions from US lifted longer term treasury yields and send USD/JPY through 82 resistance level. Thirdly, and seemed the strongest factor, risk sentiments were hit by additional tightening measures from China and markets believed that another rate hike is imminent to cool inflation. Commodities and equities were sharply lower towards the end of the week and the deep fall in gold helped stabilize the greenback even though Euro attempted a recovery. We're using EUR/AUD and AUD/JPY to gauge the impact of the above three forces and the development showed that markets were in much deeper concern in the development in China. Full Report Here... | 
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