Forex Daily Recap – The Greenback has Fallen Amid US-Sino Trade Tensions & Positive Euro Data

EUR/USD

The Fiber showcased a seesawed performance during the day amid some astounding Euro-specific data. Multiple bounces from the robust 1.1181 support levels remained capped near 1.1205 levels. The April Markit Services PMI for the EMU region reported well above the consensus estimates. The PMI came around 51.5 points, over the market expectation of 51.3 points.

Along with PMI, the March YoY Retail figures culminated near 1.9 percent, over the estimates around 1.8 percent. The Fiber marked the day’s high near 1.1204 levels and lowed near 1.1180 levels. In the middle of all the positive Euro reports, two adverse reports got published. Firstly, Spain April Markit Services PMI reported 4.33 percent below the consensus estimates of 55.4 points. Secondly, Italy April PMI came around 50.4 points compared to the expectation of 52.0 points.

US Dollar Index

The Greenback computed against the six major rival currencies initiated the day near 97.58 levels. The US Dollar Index touched the active resistance line near 97.70 levels, last marked on May 2. Notably, the economic calendar remained silent amid lack of USD-specific events. However, higher-than-expected EMU April PMI figures pushed down the Green Money during the day. Trump’s threat to increase tariff duties on Chinese goods had already left the investors unnerved. The US President had mentioned that the US might lift the Chinese tariffs to 25% over the current 10%.  He also alluded of some additional tariff duties which are yet to come. Hence, the overall sentiment remained risk-averse amid trade talk uncertainties.

AUD/USD

The Aussie pair started the day near 0.6975 level and remained capped near 0.6994 levels. After opening, the pair kept on moving upward. In the last week, the pair observed a decreasing trend whereas, this week the pair remained higher. The AUD/USD pair kept deviating above and created a new high today near 0.6999 levels. The US Federal Reserve Bank’s prominent Authorities delivered a speech at 13:30 GMT elevated the hike. Also today, the USD slipped 20 pips following the bearish US 3-Months & 6-Months Bill Auction. This downfall in the US Dollar Index helped the pair to move upward. The pair then attempted to touch 0.7000 levels. At 17:30 GMT, the pair was trading around, 0.6998 level.

USD/CNY

The USD/CNY pair opened up on Monday morning near 6.7346 level. The pair displayed a massive rise of 0.88 percent, reaching near 6.7941 level in the Asian session. However, at 01:45 GMT the pair tumbled down reaching near 6.7648 level. The sudden soar in the pair gets discounted to Trump’s Tweet on Sunday. The President warned that he would increase the US tariffs on Chinese goods.

During the last week, some progress over the US-Sino Trade deadlock got observed. Somehow, the sudden change in the US tone has increased pressure on China to further negotiations over the trade deal. In the meantime, China’s Central Bank addressed the reduction of Reserve Requirement Ratios (RRRs). With this move, the Bank aims to help small and medium-sized banks. And, this rate cut gave a boost to the Chinese Yuan dragging down the pair.