State of the market: the American returned to the lows of the month

Trading in the Asia-Pacific session remains restrainedly negative to the American after a swift correction of the US dollar index from the 93.30 mark. Stock exchanges, despite the decline in the US dollar, are traded after mixed signals on Wall Street.

Strengthening at the beginning of the day demonstrates the Australian dollar, the publication of positive data on Australia’s GDP, and oil, on correction and API data to reduce oil reserves in the US.

The swift repulsion of the US dollar index from the level of 94.30 and the return to the psychology of 94.00 indicate the unwillingness of the American to reverse the downward trend, which is also caused by the situation around the trade confrontation of Trump, which practically does not surprise the market, and the main opponents in this issue apply counter measures.

So, for the US dollar index the main support is the level of 93.80-70, the consolidation below which will indicate the opening of the road to the support levels: 93.60 and 93.40.

Also, read: “Government Bonds – Mechanism of Trade and Correlation with the Currency Market”

Hanzenko Anton