Dollar Steady As Market Turns Its Focus On European & US Data
May 15, 2019 | Wednesday
The U.S. dollar stayed still while the Australian currency moves near surpassing a four-month low on Wednesday sessions. The traders also wait European and U.S. data, whether it is over for the worldwide economy.
The forex market showed a bit reaction of worse-than-expected growth within the Chinese industrial production and retail sales for the month of April. It underlines the necessity of Beijing to roll out additional stimulus means to back the world's second-biggest economy.
The dollar got supports while the trade issues remain mainly on the investor's minds upon U.S. President Donald Trump insisted the trade talks with China hasn't collapsed.
According to Nick Twidale, chief operating officer at Rakuten Securities Australia in Sydney, the investors are to proceed in monitoring the "key barometer" of the currency pairs. Twidale added that the Australian dollar, along with the yuan, was still "under pressure near recent lows." He further explained that the traders are searching for additional proof of lesser trade dispute tensions before they go in for fresh long entries.
The dollar index facing its major rivals remain steady at 97.514 about 0.2 percent incline in the previous session.
As of now, the market turns its focus on the eurozone and the German GDP reports along with the U.S. retail sales and industrial output for the month of April. That of which is due on Wednesday that mainly points the situation of the global economy.
According to the latest preliminary reading late last month, the GDP within the 19 countries which shares the euro inclines by 0.4 percent quarter-on-quarter during the first three months of 2019.
Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank then said that with China's "weak data," the markets aren't able to "avoid the reactions" whenever the U.S. figures are to become weak as well.
Loving what you've read now and want to have more news similar to this? Send your contact details here. Need to advertise your business? Connect with us now, and we'll be glad to help.