State of the market: pessimism returns to the market - Ester Holdings

State of the market: pessimism returns to the market

From the start of trading on Wednesday, the US currency has  strengthened noticeably against a basket of competitors. The reason for the significant growth of the US dollar was the comments of US President D. Trump, which sounded like a promise to build a wall on the border with Mexico, and the modernization of the US infrastructure. At the same time, Trump did not give hints about the US-Chinese trade negotiations that the market expected.

At the beginning of the day, the Australian dollar was under significant pressure, which the day before received support from the positive expectations of the RBA.  The words of the Central Bank of Australia Governor, Lowe had pressure on the Australian dollar. He said that in case of a need to reduce employment and inflation, interest rates in Australia can be reduced. This was the reason for the general sale of the Australian dollar, which was reinforced by general pessimism.

From the start of the day the US dollar index has updated a week’s high at the level of 96.20, confirming keeping the upward trend in the dollar, but he was in the overbought zone. Significant resistance settled at levels: 96.30 and 96.50, support: 96.00 and 95.80.


Read also: “How long will last the US trade war against all?”

Hanzenko Anton

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