State of the market: data on China cause growing fears
At the start of Monday, data on China were published, which turned out to be rather ambiguous. Despite the growth of China’s GDP in the second quarter to the level of 1.8%, investors preferred to focus on the weak data on industrial production. For example, China’s industrial production unexpectedly declined in June, thereby restoring fears about China’s economy and triggering an increase in negative sentiment in the Asia-Pacific session.
With the growth of pessimism, the assets of the safe harbor received support. The US dollar remains under pressure from the end of trading on Friday, which is due to the technical correction of positions on the American dollar and the reduction of fears around the trade confrontation between the US and China.
The US dollar index at the beginning of the week is trading lower, thereby breaking the uptrend last week. So, support for the US dollar index is the level of 94.60, the breakout of which will indicate a further decline and a test of the levels of 94.40 and 94.20. Resistance levels are: 94.80 and 95.00.
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Hanzenko Anton
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