The US dollar is bound to be reel in by the South African rand to its support levels in early January. After its drop in early December, the USDZAR pair has failed to recover in sessions thanks to the mixed sentiment in the US economy and the Sino-US trade war. Actually, its hard to point the actual strength of the South African rand as there is a clear lack of economic data from the nation. And on top of that, the country’s prior reports regarding its economy are obviously not its main source of strength. Perhaps the recent decision of the global rating agency Fitch to keep South Africa on its long-term local and foreign currency debt ratings at BB+ gave the rand much-needed strength to rally against the greenback. The country now remains one notch under investment grade on the international agency’s rating. Aside from that, the South African government keeps its commitment to stabilizing and improving the country’s fiscal position. December 23, 2019
Over the past few weeks, the USDILS pair has struggled to decide on a clear direction thanks to the uneasiness of traders over the US-China trade war. But recently the pair dropped, making the greenback lose its monthly gains against the shekel. The marginal growth in Israel’s monthly industrial output for October is giving the shekel support in sessions, allowing it to pull the USDILS pair lower. Yesterday, The Israeli Central Bureau of Statistics issued the country’s industrial output report showing growth from 0.8% to 2.6% in October on a month-over-month basis. Although figures aren’t that big yet, it’s still buoying the faltering hopes for the country’s economy. However, it is unknown whether the pair could reach its support as Israel’s quarterly unemployment rate reportedly rose half a point to 3.90% from 3.40 prior. Earlier today, the Israeli Bureau of Statistics issued the unemployment report.
The Hong Kong dollar is looking to close 2019 with significant gains against the US dollar in sessions. The pair had a troubling plunge in the first half of the last month of the year. Unfortunately, the attempts of USDHKD bulls to get back up seems to be futile, especially after today’s sharp fall. Bears are expected to drag the pair lower and hit its resistance in early January. Perhaps the disheartening results from the US GDP growth sealed the fate of the US dollar. On Friday, the quarterly GDP of the United States was issued by the US Bureau of Economic Analysis. The third quarter gross domestic product met its projections on a quarter-over-quarter to 2.1% from 2.00% prior. Meanwhile, the country’s GDP price index for the third quarter remains stagnant at 1.7%, disappointing experts who expected a 0.1% improvement. The little progress failed to buoy the US dollar in sessions, resulting in catastrophic losses for the USDHKD pair.
The lackluster CPI results from Singapore paved the way for the US dollar to hold on to its current levels and inch its way to get gains in sessions. Earlier today, Singapore’s annual consumer price index for November was released by the Singaporean Department of Statistics. The Singaporean CPI managed to reach forecasts of 0.6% growth from 0.4% prior. However, traders seem to be dissatisfied with the dull figures. But still, the US dollar failed to seize the moment and rally, thus leaving the floor for experts to believe that the USDSGD doesn’t have enough full to have an uphill climb. Thus, the pair is widely anticipated to gradually drop to its support in the near-term run. After all, the United States is also producing lackluster digits in its economic performance, mainly on its gross domestic product growth and PCE price index. Earlier today, the US Department of Commerce issued the month PCE price index which flatlined to 0.2% in November.