FxWirePro: Daily Commodity Tracker - 21st March, 2022 
US Dollar appreciation could face some serious headwinds, if risk aversion stemming from China worsens. So far US Dollar against a basket of currencies has performed quite well, considering the turmoil in stock market.
Stock market had its worst performing first week ever last week, however risk aversion is just refusing to calm down in this week too. One of the main driver of US Dollar has been rate hike from US Federal Reserve in 2015 and in 2016 it is likely to be similar. Fed hike, even if not main, will remain as key driving force behind and turmoil stemming from China could derail FED from expected rate hike path.
December meeting minutes show, FED policymakers are concerned on overseas development but they need to be quite dovish to dent dollar's strength, especially since market isn't expecting no more than two hikes this year, compared to FED's forecast of four. However reduction in dotplot expectations could damage Dollar's appreciation.
Fall in Chinese Yuan could seriously pose big concern as it would damage emerging market economies ability to recover, riding on weaker exchange rate.
Dollar index is currently trading at 98.91, up 0.1% for the day.
