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by Seth Parker on June 1st, 2020

Risk currencies go up, investors focus on economic recovery

More risky currencies rose against the dollar on Monday, while investors focused on signs of economic recovery in China and expected lower tensions between Beijing and Washington.

The Australian-sensitive Australian dollar increased by 8.32% to $0.6735, previously reaching a three-month high of $0.6742. The Australian currency also hit a three-month high against the yen and a 10-month high against the Canadian dollar, topping wider growth.

As a result, the dollar index against a basket of major currencies approached an 11-week low. Against a basket of currencies, the dollar fell 0.24% to 97.979, near the 11-week low of 97.944 reached last week.

The Australian dollar also received support against the backdrop of a jump in prices for the country’s main export product – iron ore, which reached a record peak on Monday.

US President Donald Trump did not introduce new tariffs on China during a press conference on Friday, where he outlined his response to tightening Beijing’s control over Hong Kong.

Ray Attrill who is the head of the currency strategy at the National Australia Bank in Sydney, declared that this eliminated the short-term risk of an intensification of the US-China trade war.

Moreover, investor sentiment was supported by data on China’s manufacturing activity released on Monday, indicating a slight but unexpected recovery in May.

The New Zealand dollar rose 0.6% to $ 0.6243.

Pound rose 0.3% to $ 1.2384.

The Canadian dollar added 0.4% to 1.3721 against the greenback.

The euro strengthened 0.2% to $ 1.1140, trading near a two-month high of $ 1.1145, as investor sentiment strengthened amid EU plans to create a recovery fund.

The Chinese yuan in the offshore market has grown 0.23% to 7.1183 thanks to hopes of easing tensions between the US and China.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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