U.S. Dollar Firms As European Shares Fall On China Worries
27 July 2021 - 5:49PM
RTTF2
The U.S. dollar advanced against its most major trading partners
in the European session on Tuesday, as China's crackdown on
technology and private education companies lifted demand for safe
haven assets.
Chinese authorities announced regulations for food delivery
platform, ensuring minimum wages for delivery personnel.
Beijing unveiled measures aimed at cooling the property market,
while also tightening controls on private tutoring companies.
Investors look ahead to the Fed meeting beginning later in the
day for more clues about the timing of tapering the stimulus
program.
Fed officials had begun discussion on tapering in the June
meeting, but Powell clarified that a decision regarding this matter
would be made upon seeing a substantial improvement in the labor
market.
Today's key economic reports include U.S. durable goods orders
and consumer confidence index.
U.S. GDP data for the second quarter is due out on Thursday,
followed by personal consumption data on Friday, which is the Fed's
preferred inflation gauge.
Reversing from its early lows of 1.3832 against the pound and
1.1812 against the euro, the greenback strengthened to 1.3767 and
1.1770, respectively. The greenback is poised to find resistance
around 1.36 against the pound and 1.16 against the euro.
The greenback approached a 6-day high of 0.6946 against the kiwi
and a 4-day high of 1.2593 against the loonie, up from its prior
lows of 0.7006 and 1.2538, respectively. The greenback is seen
finding resistance around 0.68 against the kiwi and 1.27 against
the loonie.
The greenback recovered from an early near 2-week low of 0.9148
against the franc and rose to 0.9187. Should the greenback
continues its uptrend, 0.93 is possibly seen as its next resistance
level.
The greenback reached as high as 0.7337 against the aussie,
after a drop to 0.7389 at 8:15 pm ET. Next key resistance for the
currency is seen around the 0.72 level.
On the other hand, the greenback was lower against the yen, at a
6-day low of 109.98. The next possible support for the dollar is
seen around the 108.00 level.
U.S. durable goods orders for June, Federal Housing finance
agency's U.S. house price index and S&P/Case-Shiller home price
index for May and consumer confidence index for July will be
featured in the New York session.
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