Dollar trades broadly lower today and selloff accelerates in early US session. EUR/USD’s reversal ahead of 1.1507 key support level is a factor pressing the greenback. The Chinese Yuan is also attempting another rebound after yesterday’s brief setback, with USD/CNH back pressing 6.82.
The overall development helps lifted global equities too. At the time of writing, DAX is up 0.86%, CAC up 0.83% and FTSE up 0.99%. Earlier in the Asia, Nikkei closed up 0.69%, Singapore Strait Times gained 1.66% while Hong Kong HSI increased 1.54%. China Shanghai SSE defended 2700 handle again and jumped 2.74% to 2779.37.
With the help of easing risk aversion, Australian Dollar is trading as the strongest one today, followed by Euro. Sterling is the second weakest one as worries over no-deal Brexit continues to weigh.
Technically, Euro is a major focus in the current session. EUR/USD’s immediate focus in on 1.1610 minor resistance. Break will confirm bottoming and EUR/USD should then start another rising leg in the consolidation pattern from 1.1509, targeting 1.1745 resistance EUR/GBP is now pressing 0.8957 key resistance. Decisive break there will resume medium term rally from April low at 0.8620.
German trade surplus narrowed, industrial production dropped
Euro shrugs off another batch of weak German economic data. Released from Germany, trade surplus narrowed to EUR 21.8B (EUR 19.3B seasonally adjusted) in June. Exports rose 7.8% yoy to EUR 115.5B. Imports rose 10.2% yoy to 93.7B. Industrial production dropped -0.9% mom in June, worse than expectation of -0.5%. Also from Europe, Swiss foreign currency reserves rose to CHF 750B in July. UK Halifax house prices rose 1.4% mom in July.
China foreign exchange reserves rose 0.19% in July
The Chinese State Administration of Foreign Exchange said in its website that at the end of July this year, the country was holding USD 3.1179T in foreign exchange reserves, up USD 5.8B, or 0.19% from end of June.
SAFE said that cross-border capital flows were generally stable. And, s