Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Chinese Yuan is intact
Information is not investment advice
On Wednesday, the Chinese yuan and the evergreen buck were nearly intact in Asia because market participants waited for further news on the China-US trade front.
As a matter of fact, the currency pair USD/CNY stood still, sticking with 6.8744. The Chinese Yuan has been pressured since the beginning of the week because the intensifying trade conflict between China and America drove worries over the outlook for global surge.
Risk sentiment improved a bit after American leader told that he’d meet with his Chinese rival Xi Jinping in June at the upcoming G20 meeting and that he’s assured that trade negotiations would be successful enough.
His remarks saw the Chinese currency revive from the lowest values of the year. Moreover, the Chinese Yuan also gained some support from reports that China’s major financial institution kicked off on Tuesday with an injection of up to 200 billion yuan.
The Forex market demonstrated a minor reaction to worse-than-anticipated surge in Chinese industrial output as well as April retail sales data.
In April, surge in China’s industrial output speeded down to 5.4% from a four-and-a-half year maximum in March, as Wednesday’s data revealed. Experts had anticipated industrial output would ascend by about 6.5%.
In January-April from the same period of 2018, fixed-asset investment tacked on by about 6.1%, also confounding expectations. As for private-sector fixed-asset investment, accounting for nearly 60% of total investment in China, managed to head north by up to 5.5% in the same period.
In April on-year, retail sales tacked on by up to 7.2%, missed a forecast ascend of 8.6%.
The Australian dollar went down by 0.2% hitting 0.6929.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.