State of the market: the American dollar storms two-year highs

The US dollar against baskets of major competitors updated a two-year high. This was facilitated by positive data on the growth of manufacturing activity in the USA, which indicate a decrease in the risks of a slowdown in the US economy as a result of the trade war. And that means the same for the global economy in general, after the publication of also positive data on China.

With the growth of optimism, the American currency maintained its leadership position, receiving an additional support from the results of the RBA meeting. The Central Bank of Australia lowered interest rates for the third time this year, increasing the likelihood of expectation of further stimulus measures in the region.

The US dollar index has updated its high from the start of the day, breaking the resistance at 99.50 and increasing the oversold of the American dollar against its main competitors. By this he indicated the possibility of a resistance test: 99.80-90. Support are the marks: 99.40-50 and 99.20.

Read also: “What does the US Fed Chairman Powell 
statement mean for the US dollar”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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