Forex Daily Recap – Dollar Falls on Poor PPI & Unemployment DataThe Loonie topped reaching 1.3500 levels. China stated readiness over trade tariff hikes, supporting the USD/CNY pair. The USD/NZD took a drop and reached 1.5174 levels.
US Dollar Index
The USD opened up near 97.35 levels today. Initially, the index remained consolidated near 97.40 levels, while later in the session the index slipped off drastically. The Greenback suffered a drop of 37 pips and was dragged down to 97.04 levels.
Today, a piece of news came out suggesting that China remains prepared for US issued tariff hikes. China remains shockproof from any further trade changes. Meanwhile, the US decided to start the new tariffs from tomorrow. The Green money got centralized following the US-China trade situation. Following the risk from US-China trade war, the investors stayed aloof from any futures trade.
The Loonie pair became the star performer of the day. The USD/CAD pair kicked off the day at 1.3474 levels. The pair continued to go upwards despite slight pullbacks. The Loonie attempted touching 1.3500 levels during the European session.
The Dollar Index that measures the Greenback against a basket of six major currencies stood near its four months high today. At 12:30 GMT, the Fed’s Powel statement on US economy, aided the USD to climb up. The next hours displayed positive data on US Trade balance, Inventories, and EIA’s Natural Gas report. These optimistic statistics helped the Loonie pair reach above.
On the Crude Oil Prices front, the prices dragged down amid the US-China trade deadlocks. The Loonie pair gained weight over the fall in the oil rates and managed to touch 1.3500 levels.
The USD/NZD pair continued the upward march which began from March month onwards. The pair started the day around 1.5207 levels and swung above 1.5195 during the Asian session. The USD/NZD pair marked fresh high and later took a downward ride with almost 44 pips. The pair experienced the plunge after Fed’s Powel addressed over the US economic policy. Also, the Wholesale Inventories data appeared negative. And, the 4-week Bill Auction came out bearish figures.
The US Dollar Index showcased a southward move. As the trade war negotiations did not appear taking settling steps, the market remained flat. Hence the USD/NZD pair decreased, and currently, the pair was trading near 1.5174 levels at 13:00 GMT.
The Asian session displayed positive numbers on the CNY specific data. The pair opened up 6.8064 levels in the morning. Further, it moved upwards and marked the day’s high point near 6.8299 levels.
The USD loosed its grip during the first session. The fall got supported after the Chinese declared to be ready in accepting any interest rate change in US-China trade. Hence the USD/CNY pair got a reverse interaction and went upwards reaching high levels.
Over the economic events side, the Chinese April CPI & PPI took a bull call and supported in the growth of the pair. The US Federal Reserve Chair Jerome Powell influenced profoundly over the pair. Also, the March wholesale inventories recorded low, alluding a bull call.