State of the market: the American dollar is recovering on weak commodity currencies
With the opening of trading on Tuesday, the US dollar accelerated the growth against a basket of competitors. The main strengthening of the American dollar can be traced against commodity currencies and in particular the Australian dollar. The pressure on the Australian dollar was exerted by the results of the RBA meeting, according to which monetary policy was kept unchanged, but kept very mild rhetoric. The Australian dollar weakened significantly against the American dollar, but the governments of the Central Bank of Australia did not give hints about lowering rates as it did with the RBNZ. As a result, the Aussie declined, but less significantly than expected.
Amid the decline of the Australian dollar, other commodity currencies are under pressure due to a slowdown in optimism in the stock markets in the Asia-Pacific region. It is also worth noting the strengthening of the American dollar after the decline and as an asset of a safe haven.
The US dollar index on Tuesday updated the last weeks high and consolidated above the support of 97.20, indicating that the uptrend continued, despite the slowdown in growth. Significant resistance levels are: 97.50 and 97.70.
Read also: “To increase or not to increase, difficult choice of the US Federal Reserve”
Hanzenko Anton
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