17.05.2019: USD asserts strength again (AUD, USDX, JPY)
The US dollar surged up on upbeat economic data and weakness of its major counterparts.
Presently, the euro is pressured by political statements of Italy and the pound sterling by Brexit. The Australian dollar is tumbling steadily testing new lows. The greenback, on the contrary, has strengthened to its highest since May 3. During the Asian session, the US dollar was trading at 97.79. Aversion of risk appetite also contributed to the growth of the greenback as a safe-haven asset. The network reported that China may refuse to negotiate with the United States.
The US dollar rose overnight to 110 compared to the yen. However, the greenback couldn’t hold that high.The USD/JPY pair fell to the level 109.57 amid an escalation of the US-China trade conflict. Analysts predict that the USD/JPY pair rally will be held in the area of 110.50 and 111. The yen is likely to reverse as well. Traders are awaiting reports on Italian fiscal risk. Notably, the yen might gain ground despite any changes. The Japanese currency is expected to strengthen against the euro and the US dollar.
The Australian dollar strongly affected by weak data on the labor market. The Aussie tested new lows in four months. It closed Friday's Asian session at 0.6884 against the US dollar. Currently, it is difficult to allocate a reliable level of support for the AUD/USD pair.
The Reserve Bank of Australia did not cut its interest rates during the last meeting as there was still hope on progress in trade negotiations between the US and China. However, after the escalation of the conflict, the RBA has no choice but to cut rates.
FX Analytics - https://www.instaforex.com/forex_analytics
Forex Calendar - https://www.instaforex.com/forex_calendar
Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv
Forex charts - https://www.instaforex.com/charts
Instant account opening - https://www.instaforex.com/fast_open_live_account
Forex Trading Contests - https://www.instaforex.com/forex_contests
List of official InstaForex blogs:
#forex_news # asian_session #instaforex_tv
Calendar and reviews
Calendar and reviews