Forex Daily Recap – Amongst The Six Rivals Of Greenback, Euro Spotted The Last PositionPoor US Feb Durable Goods Orders Report overlooked by USD Index. Kiwis and Aussies join the extended downline rally.
The Kiwi pair extended previous day’s losses, but this time with more intensity. The pair tumbled down throughout the day making it to the lowest level since the second week of March. Poor Business Confidence Index and weaker fourth fiscal quarter figures had initiated the last day’s plunge. On the USD Index front, the greenback rose amid weaker Durable Goods Orders reports. The dovish economic stance of RBA further worsened the fall, uplifting selling pressure. Investors unnerved witnessing the appalling condition of the NZD/USD. The pair opened up on the Asian trading session at 0.6790 level. However, during the North American session, the pair had reached 0.6743, 0.69 percent down.
US Dollar Index
The greenback computed against the major six currencies surprisingly began with a Gap Up opening, 0.096 up from the previous closing. The index knocked off the significant resistance of 97.094 level creating fresh three-week highs. In the real sense, the USD Index was supposed to drop considering the weak US Durable Goods Orders reports. February Durable Goods Orders was 1.6 percent diminished as compared to the consensus estimate of -1.8 percent. Non-defense Capital Goods Orders excluding the Aircraft reported 0.1 percent down while the market expected around 0.0 percent. Both the other reported Durable Goods Orders one excluding Defense and one excluding Transportation reported weaker than market expectation. The USD Index completely overlooked the weak reports and rose to break all the in-between resistance levels.
During the day, Euro fell the most among the six major currencies weighed against the greenback. The USD Index got stronger as today’s trading session proceeded. Investors believed that the European Central Bank would hardly opt for an interest rate hike. Poor Factory data reports of the Eurozone region reported on Monday was the lowest March score in the last six years. February Producer Price Index reported 0.1 percent lower than the consensus estimate of 3.1 percent.
The EUR/USD opened up the day at 1.1206 level and later settled near the lowest vicinity of 1.1184 level, albeit had a small jump touching 1.1211 level. Brexit uncertainties have put the EU officials under full pressure ahead of their upcoming elections. Even the UK is not able to frame a proper deal for a Brexit, so things get light and tensions over the euro currency diminishes.
AUD/USD The Aussie pair kicked off lowered during the Asian session touching the lowest vicinity of 0.7053 level in the last three weeks. On the way to the lower side, the AUD/USD breached the strong support level of 0.71 level. The dovish outlook of the Reserve Bank of Australia (RBA) sent severe upset in the minds of the investor thereby embedding immense selling pressure on the pair. In the morning session, RBA reiterated that monetary policy interest would remain unchanged and hopes of interest rate remain almost nil. On the other side, the USD index was climbing new highs for the day dragging the pair more down.