The dollar falls this Tuesday, April 18, against most of the main currencies after learning about growth better than expected Chinawhile strong UK wage figures supported sterling.
Chinese Gross Domestic Product (GDP) grew by 4.5% year-on-year in the first three months of the yearaccording to data published on Tuesday, exceeding the forecasts of analysts who pointed to a 4% expansion, thanks to the fact that the end of restrictions due to COVID-19 boosted the world’s second largest economy.
Other data showed that the retail sales growth accelerated to 10.6%exceeding expectations and reaching a maximum of almost two yearswhile the Industrial production also it acceleratedalthough it was somewhat below expectations.
“Normally, a day when good activity data is published in China there is a Decent Rally in Commodity and EM Currencieswhile the dollar goes back, and that’s what we’re starting to see,” said Chris TurnerGlobal Head of Markets at ING.
“The improvement of chinese data also often seen as a good news for the eurobecause of the importance of the manufacturing sector,” Turner added.
The euro rose 0.5% to $1.0978, after two consecutive daily falls of more than 0.5%. He dollar index lose a 0.4%, at 101.67 unitsafter having advanced more than 1% in the last two trading sessions.
The pound rose 0.5% to $1.2438despite the unexpected rise in unemployment rate in the three months prior to February, since the salary growth it remained above forecasts, which could lead the Bank of England to raise rates again in May.
Australian dollar gains 0.6% to $0.6741, after minutes from the Reserve Bank of Australia showed it was considering an 11th consecutive rate hike in April before deciding to pause. In addition, the US currency was down 0.3% against its Japanese counterpart at 134.02 yen, while the New Zealand kiwi was up 0.5% at $0.6213.
Source: Ambito
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