The US dollar reached the level of a six week high against since Friday after the biggest gain in consumer spending this year, thus making the market speculated that traders will return raises the issue of the Fed's interest rate hikes this year to the surface.
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| Market Starts to Rising the Risk Level, US Dollar Potential to Rise |
USD / JPY started trying to get even with the weakness climbing to a level of 108.91. The Chinese economy, on Sunday reported continued progress slowing growth in April, weighed down by overcapacity industries such as steel and coal. This makes the increase in demand for safe-haven currencies like the Japanese Yen.
The US currency rose against the yen ahead of the release of the minutes of the Fed's meeting last April on next Wednesday. The Australian dollar touched the lowest level in 10 weeks and New Zealand currencies slumped following a report from China that pointed to slowing growth in many parts of Asia, especially China, given the country is the largest market for exports of Australia and New Zealand.
Will the US Dollar Bullish This Week
"In our opinion, will be a slight rise in the dollar this month," said Joseph Capurso, senior strategist with the Commonwealth Bank of Australia in Sydney. Capurso added that the greenback will advance as the market will put a little more risk that the Fed interest rate will rise again in 2016.
AUD / USD rose 0.2 percent to 0.7285 figure after slumping to a low level of 0.7237, the weakest since March 2. While the NZD / USD fell slightly by 0.1 per cent towards the range 0.6766.
At the end of last week, the US dollar was boosted by a rebound in US retail sales. US retail sales in April surged by 1.3 percent, in contrast to the data in the previous period were down as much as -0.3 percent. Previously, the economists also predicted that retail sales in April will go down -0.3 percent, or in other words equal to the period of March.
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source : yahoo.com
