State of the market : the American dollar resumes its growth
Trading on Tuesday opened with a marked increase in optimism in the Asia-Pacific stock indexes. Chinese trading platforms show the main strengthening of stock indices. At the same time trading in the American session closed lower. The reason for the resumption of optimism was the data that the United States eased trade restrictions on the Chinese technology giant Huawei. Earlier, Huawei was blacklisted because of suspicion of espionage, which is also attributed to the consequences of the US-Chinese trade war.
At the start of the day, the RBA meeting minutes were also published, in which the governing board considered the possibility of lowering interest rates in Australia at the June meeting, arguing that this would stimulate employment growth and inflation in Australia. Against the background of very soft rhetoric, the Central Bank of Australia the Australian dollar turned out to be under the pressure which dragged along the New Zealand currency.
In the face of reduced risks of trade opposition and attempts to increase optimism, the US dollar index accelerated growth against a basket of major competitors. The main strengthening of the American dollar, in addition to the Australian and New Zealand dollars, can be traced to the relative currencies of the safe haven. The index of the US dollar since the beginning of the day broke through the level of 98.00, aiming at resistance levels of 98.10 and 98.20. Support is located at marks: 98.00 and 97.90.
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Hanzenko Anton
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