Yahoo Finance Forex Daily Recap – USD/CNY Jumped Off Crag Underpinned Astounding Chinese Trade Figures
US Dollar Index
The USD Index that computes the greenback against the six major rival currencies slumped massively in the first half and attempted to recover in the latter half. The index had opened up near 97.16 levels, and a sudden selling pressure grappled the greenback bringing it down to the two weeks low of 96.15 levels.
The dollar slumped amid poor Michigan Consumer Sentiment Index, higher Chinese imports and other geopolitical tensions. This plunge had benefitted most of its strong rivals leading to their substantial escalation. Gold prices stabilized over the weakened Dollar Index heading to its first weekly gains in the last three weeks.
USD/CNY
The Chinese yuan pair opened up on Friday morning near 6.7196 level. After remaining reluctant to move in either direction, the pair was pushed off the cliff making it land near the strong support line of 6.7059. However, at 09:30 GMT, the USD/CNY had almost crossed and gone beyond this sound support region.
The massive plunge in the pair accounts to the weakening in the greenback and astounding Chinese reports published during the early session. Chinese March Trade Balance USD reported around $32.64 billion, enormously higher than the consensus estimate of just $7.05 billion. Chinese YoY, Import and Export figures, reported way much above the market expectation. The Chinese YoY Import number was 6.5 percent up while the export figure was 7.8 percent up. The US had also come up with some sound reports revealing above the consensus YoY Import and Export Price Index but lacked comparable power to uplift the yuan pair from continuing the downward rally. The greenback was trading near 96.75 level, 0.22 percent down for the day.
USD/RUB
On a broader timeline, the USD/RUB continues down trending amid soaring crude prices. The ruble pair slipped from 64.62 levels reaching the lower vicinity of 64.15 levels during the Asian trading session. The rationales behind the plunge were the uprising crude prices and the tumbling US Dollar Index.
The Russian Ruble is one of the commodity-linked currency that significantly benefits from a lift in the crude prices. Brent crude oil futures rose 1 percent touching $71.52 per barrel at 16:18 GMT. Earlier the day, fears had arisen over China’s economic data as most of the oil demand comes from the Asia side. However, the actual data came out precisely opposite to the expectation, easing investor tensions. Fragile US Dollar Index remained low amidst the release of high import numbers from China.
EUR/USD
The euro pair was heading north intending to knock off the strong resistance line at 1.1320 level during today’s session. The pair showed some good performance with the undermined greenback. The EUR/USD began trading on Friday morning near 1.1258 levels shooting straight 30 pips up reaching near 1.1285 levels.
After remaining consolidated for quite a while, the pair scored more after the release of above the consensus Eurozone February Industrial Production reports (Both YoY and MoM). The pair further elevated marking the day’s fresh high with the announcement of the US April Michigan Consumer Sentiment Index. The Consumer Index was 1.1 percent below the market expectation.
This article was originally posted on FX Empire
More From FXEMPIRE:
Natural Gas Price Forecast – Natural gas continues to show weakness
Natural Gas Weekly Price Forecast – Natural gas markets continue to show weakness
Natural Gas Price Prediction – Prices Slip as Asian Natural Gas Benchmark Declines
Gold Weekly Price Forecast – Gold markets form massive shooting star
