The US dollar rose at the start of trading today but is still under pressure as US bond yields plummet and fears that economy may be in a recession. Investors turned to the dollar at the beginning of the week as China and the United States reached a 90-day truce during discussions on the sidelines of Group 20 meetings at the end of last week.
The dollar index is still moving above the uptrend line on the daily chart we mentioned earlier, currently being traded at 96.90 levels.
The Australian dollar had fallen appreciably against the US dollar in the wake of disappointing data for the Australian economy, which undermined any close opportunity to raise interest rates that have remained unchanged for more than two years.
The Australian dollar fell from a 4-month high of 0.7394 since the beginning of the week as the economy posted its slowest two-year growth in the third quarter of 2018. GDP rose by 2.8% on yearly basis after rising by 3.1% in the previous quarter.
The British pound managed to erase some of its losses during the day following the positive outlook for the Brexit, despite less than expected service sector data; Sterling now is currently trading at the 1.2770 levels.
Markets are eyeing the Bank of Canada meeting today and the central bank is widely expected to keep interest rates at 1.75% while maintaining a positive outlook for the economy and a possible continuation of the monetary tightening policy in 2019.
