USD Gains Post-PPI but Faces Resistance; AUD Outperforms, CAD Flat

The US dollar strengthened following the release of US Producer Price Index (PPI) data, but the move higher encountered resistance across major pairs, with mixed reactions suggesting limited conviction behind the rally. EUR/USD slipped back below its 100-day moving average at 1.17079, a key technical level that could act as resistance on any recovery attempts. AUD/USD notably outperformed, pushing to new highs against the greenback despite broader dollar strength, while USD/CAD remained largely unchanged on the day. The divergence in currency pair reactions highlights that while the PPI data provided a short-term boost to the dollar, traders remain cautious about extending long USD positions at current levels. Near-term focus shifts to whether EUR/USD can reclaim the 1.17079 level or if bears will push for a deeper correction. The Australian dollar's resilience suggests underlying demand for risk-sensitive currencies, potentially limiting further USD upside. Traders should watch for follow-through momentum in coming sessions to confirm directional bias.