State of the market : the dollar continues to grow
At the opening of trading on Wednesday, the US currency continues to maintain a positive trend against most competitors. The significant growth of the American dollar from the start of the day can be traced against the commodity currencies: Australian, New Zealand and Canadian dollars. Such dynamics is associated with the recent increase in oil prices and weak inflation data in Australia.
At the beginning of the day, data on producer price index in Australia for the first quarter came out, which unexpectedly fell to zero, putting the pressure on the Australian currency. Following the decline of the Australian dollar, other commodity currencies were under the pressure.
Fig. Australia Consumer Price Index (CPI) (q/q) (Q1) chart
From the start of the day, the US dollar index has returned to strengthening on the decline in the value of commodity currencies, in fact, having resumed growth and having regained yesterday’s correction after growth. The upward dynamic of the American dollar is limited by resistance levels: 97.80 and 97.90. Support is located on the marks: 97.60 and 97.50.
Read also: “A comprehemsive rollback is another secret of technical analysis”
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Expectations from the USD/JPY for the end of April – early May
- U.S. and E.U. Trade War
- Gold: results and forecasts
Current Investment ideas: