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Dollar fell in early trading as trade concerns returned

2018-12-04 09:15 am | Resource: News | No Views : 47

The dollar fell on Tuesday in early trading with comments by US Secretary of State, Jerome Powell, in which he said the US economy still had to face some challenges as traders fled the US currency in favor of risk-sensitive currencies amid trade concerns between the United States and China.

In Asian trading, the Reserve Bank of Australia kept the official rate unchanged for the 28th consecutive month at 1.5% as expected.

Remarks by Jerome Powell

Federal Reserve Chairman Jerome Powell said that despite strong economic progress, the United States still faces a number of challenges, including slower wage growth and weaker productivity. Speaking at a ceremony at the bank, Powell said that despite recent increases in wage growth, incomes for low-income workers have grown very slowly over the past few decades.

He added that challenges remained, although unemployment was near its lowest in five decades and the strength of the financial system since the 2008 global financial crisis.

 Russia proposes to Argentina to dispose of the dollar to an American

In other news, Russia has proposed to Argentina to shift from the US dollar to its national currencies when making transactions between the two countries.

"We propose that we actively participate in their efforts not only with [the Argentineans], but also with our other partners, and switch to payments in national currencies, including the ruble peso," said the Russian ambassador to Argentina Dmitryvikostiov Sputnik. That the Russian bank opens an office in the South American country.
  • The US dollar index, which tracks the greenback against a basket of other currencies, traded at 96.667, down 0.31%.
  •  The Aussie dollar was up 0.2% at 0.7375
  • The New Zealand dollar / US dollar was up 0.5% at 0.6961.
  • The USD / JPY pair fell 0.6% to 6.8420 following the trade news.
  • The yen was also higher against the US dollar, with USD / JPY shedding 0.5% to trade at 113.11.

Other analysis

USD/JPY Technical analysis 14 December 2018

Time frame Used - four hours The USDJPY is moving in a bullish direction in the near term. The USDJPY faced resistance and selling pressure nearly of the resistance level of 113.58 to retract to the support level 113.20 Then start to bounce back again. In view of the technical indicators Both the RSI and the Stochastic are indicating signs of recovery. Therefore, we expect that the USDJPY will test…

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