On Wednesday, the American currency fell across the board at the end of Asia-Pacific trading hours, as optimisms over more government stimulus in the eurozone alongside a rapid economic recovery across the globe following an ease of the lockdown appeared to have ramped up the investors’ appetite for riskier assets, while the US Dollar index (DXY) measured against a basket of six major currencies on an average was trading 0.35 per cent lower to 97.34 on early European trading.
In point of fact, the greenback was pounded against the safe-haven Japanese yen, Swiss France alongside the British currency as the US President Donald Trump had announced a week-long curfew across the United States in order to prevail a mass protest against the Trump Administration what was imitated as racism ahead of a November 2020 US Presidential election as quoted by a number of political analysts.
Apart from that, the Chinese export oriented Australian currency had reached to a five-month high against the American dollar following a rapid post-pandemic recovery of China, whose factory activity PMI (Purchasing Managers’ Index) was held near a 50.0 level over the recent past despite a bleaker demand outlook, while the bloc’s single currency surged to a three-month high against its American peer over prospects that the ECB (European Central Bank) policymakers would heighten up its €750 billion bond repurchase program, called as the Pandemic Emergency Purchase Program, by €500 billion following an ECB meet scheduled to be held on tomorrow.
Major currencies binge over buoyancy as nationwide protest darkens US Dollar outlook
Citing statistics, during preparation of the report, at late Asia-Pacific trading hours, GMT. 09.00, the Australian Dollar was trading 0.6 per cent higher to $0.6937 against its American counterpart after spiking as much as 1 per cent to $0.6982 at early morning trading, the Aussie currency’s highest level since January 3rd, while beside the Tasman sea, the New Zealand dollar rose to its three-month peak to $0.6430.
As beforementioned, Australian Dollar pared some of its earlier gains on late Asia-Pacific trading hours after the country’s treasurer had told that the nation had already been in recession, however, a bullish commodity market alongside an improvement in China demand have been supporting the Australian currency.
In tandem, the greenback had also foundered to a one-month low to $1.2615 against the British currency, while the bloc’s single currency rose to $1.1205, its highest level since March 16th. Meanwhile, referring a generalized weakness in US Dollar amid a nationwide protest across the United States, as the US Department of Defence had brought in a legion of 1,600 army troops into Washington DC following several nights of violent protests, a FX strategist at Daiwa Securities in Tokyo, Yukio Ishizuki said on earlier in the day, “The U.S.
dollar is generally weak. The Australian dollar has a lot of room to run because there are still a lot of shorts that need to be covered. The economy recovery story is the main factor. ”