Let us check the market. The close of the two-week low dollar index is at -0.1%. As risky rally runs, the Chinese yuan breaks past 7 against the dollar. New Zealand and Australian dollars edge ahead.
Better-than-forecasted United States services data provided the latest boost to confidence in a global economic recovery from the COVID-19 pandemic. Thus, on Tuesday, the currency nursed losses, and riskier currencies added a fraction to galloping gains.
The dollar huddled near a two-week low against a basket of currencies. After soaring with runaway Chinese equities on Monday and briefly broke past the 7 per dollar barrier, the Chinese yuan picked up where it left off. The Antipodean currencies also followed suit soon after.
It was after a front-page editorial in the China Securities Journal that the surge came. This was affiliated with the state-run Xinhua, who said that fundamentals laid the foundation for a healthy bull market.
Moreover, data showed that United States service industry activity rebounded to almost pre-pandemic levels last month. This was with a headline figure of 57.1 well ahead of expectations around 50.2.
Imre Speizer is an analyst. He works at Westpac in Auckland. Speizer said that people should keep buying forever. Only half in jest because he predicts the New Zealand dollar will tack on more than a cent over the next week or so.
He added that the bigger picture is that economies are back to something that looks like a V-shape again.
The United States dollar is a safe haven. Thus, it goes down if sentiment is strong.
Testing resistance around $0.6585, the kiwi NZD=D3 rose as much as 0.3% to a one-month high of $0.6580. Speizer is forecasting that it can reach $0.67 if sentiment holds. The Australian dollar remained at $0.6976.
Taking cues from lively stock markets, both make a renewed tilt at the top of the range they have held for weeks.
This is the current news of the market.
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