State of the market: the dollar remains under the pressure of correction

At the opening of trading on Wednesday, the US currency remains under pressure from the correction and growth of optimism. According to the results of trading on Tuesday, the US dollar index against a basket of competitors closed lower, which was caused by a general increase in optimism and demand for commodity currencies.

Additional support for commodity currencies has had a significant increase in the New Zealand dollar (NZD), which was caused by the very hawkish tone of the Reserve Bank of New Zealand. Despite the fact that the RBNZ actually maintained its monetary policy unchanged and did not give clear signals about its change. The tone of the Central Bank of New Zealand was very confident and directed more toward a positive trend, prompting the market to tighten monetary policy.

The index of the US dollar from the start of the day remains under pressure, maintaining the downward trend on Tuesday. It should be noted about the slowdown in the decline of the American dollar, which indicates attempts of recovery. Positive sentiment in the stock markets and the strengthening of commodity assets will continue to put pressure on the US dollar. Significant support: 96.70 and 96.40, resistance: 97.00 and 97.20.

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Hanzenko Anton

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