Dollar Crashes Below 99, Gold Surges to $4,525, Oil Extends 4-Day Rally, ASX Posts 6-Day Losing Streak

[RichieVo]

Date: August 20, 2026

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Executive Summary​

The US dollar crashed below 99.00, hitting its lowest level since late May, after the Treasury doubled its long-term bond buyback program, boosting USD liquidity and sending yields lower. Gold surged to $4,525/oz – its highest since early June – as lower yields and a weaker dollar fueled the rally. Oil extended gains for a fourth session on escalating US-Iran tensions. The ASX200 fell for a sixth consecutive session, while the Hang Seng held steady near 25,495. Markets now turn to US jobless claims and Philly Fed data for fresh catalysts.

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US Dollar – Crashes Below 99​

DXY plunged to 98.90, its lowest since late May. The US Treasury doubled its long-term bond buyback program, increasing USD liquidity and driving Treasury yields lower. FOMC minutes confirmed some members supported rate hikes, but the dovish Treasury action overwhelmed hawkish signals. RSI at 37 – still room to fall.
Key levels: Support 98.50–98.40; Resistance 99.00–99.17.
Outlook: Bearish below 99.00.

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USD/JPY – Drops to 158​

USD/JPY fell to 158.10 – its lowest in over a week. US Treasury buyback program pushed bond yields lower, weighing heavily on the dollar. DXY's sharp decline further dragged the pair down. Support at 158.00-157.30; resistance at 159.61-160.00.
Key levels: Support 158.00–157.30; Resistance 159.61–160.00.
Outlook: Bearish short-term. Intervention risk remains.

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Gold – Surges to $4,525​

Gold soared to $4,525/oz, its highest level since early June. The Treasury buyback program drove yields lower, reducing the opportunity cost of holding gold. DXY's collapse added further momentum. Next resistance: $4,548 (Bollinger upper) and $4,600.
Key levels: Support $4,450–$4,400; Resistance $4,548–$4,600.
Outlook: Strong bullish. Targeting $4,600.

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WTI Crude – Extends 4-Day Rally​

WTI crude rose to $84/bbl, its fourth consecutive session of gains. US-Iran talks remain deadlocked, with Trump confirming no negotiations are ongoing. US crude inventories fell by 328k barrels, adding supply concerns. Next resistance at $86-87, then $90.
Key levels: Support $82.00–$80.00; Resistance $86.00–$87.00.
Outlook: Bullish short-term. Watch geopolitical headlines.

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ASX200 – Extends Losing Streak to 6 Days​

ASX200 fell 0.18% to 9,054, marking its sixth consecutive decline and a two-week low. Tech (-3.15%) sold off following US semiconductor weakness. Healthcare (+2.6%) and energy (+0.77%) were the only bright spots.
Key levels: Support 9,000–8,950; Resistance 9,140–9,200.
Outlook: Short-term pullback. Needs to hold 9,000.

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Hang Seng – Steady Near 25,495​

The Hang Seng held steady at 25,495. HKEX (+1.6%) and Hong Kong & China Gas (+7.37%) supported the index, while semiconductors (-12% Hua Hong) and tech weighed heavily. Resistance at 25,570-25,600.
Key levels: Support 25,300–25,000; Resistance 25,570–25,600.
Outlook: Neutral.

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Currency Pairs – Key Levels​

• EUR/USD: 1.1670–1.1740 – Hỗ trợ 1.1652–1.1614; Kháng cự 1.1700–1.1740
• GBP/USD: 1.3590–1.3658 – Hỗ trợ 1.3450–1.3422; Kháng cự 1.3600–1.3658
• AUD/USD: 0.7110–0.7150 – Hỗ trợ 0.7035–0.7000; Kháng cự 0.7149–0.7200
• USD/JPY: 158.10–158.25 – Hỗ trợ 158.00–157.30; Kháng cự 159.61–160.00

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Key Events Today (August 20)​

Time (AEST)	Event	Notes
22:30	US Initial Jobless Claims	Weekly unemployment data
22:30	US Philadelphia Fed Manufacturing Survey	Regional manufacturing gauge

• DXY: Bearish below 99.00
• Gold: Strong bullish above $4,500, targeting $4,600
• Oil: Bullish, geopolitical-driven
• USD/JPY: Bearish toward 158
• ASX200: 6-day losing streak, watch 9,000 support
• Hang Seng: Neutral near 25,500