US Dollar Dips, Asian Currencies Gain After China’s GDP Release

The US dollar is starting the fresh trading week on a weak footing, even as Asian currencies receive a boost from China's latest GDP data

US Dollar Dips, Asian Currencies Gain After China's GDP Release

The US dollar is starting the fresh trading week on a weak footing, even as Asian currencies receive a boost from China’s latest GDP data reassuring markets of economic recovery in the aftermath of the coronavirus pandemic. At the time of writing, the US dollar index DXY is trading around 93.61.

The US dollar’s safe haven appeal remains supported by concerns about a rise in coronavirus cases around the world as winter approaches, forcing government to reimpose restrictions. In addition, uncertainty about the upcoming presidential elections and fiscal stimulus package in the US also keep the greenback in favor among traders.

The previous week saw the US dollar gaining around 0.7% of its value amid a risk averse mood in markets. Worries about a resurgence in cases weakened its major peers, the EUR and the GBP.

On the other hand, trade-exposed currencies in Asia like the CNH, AUD and NZD strengthened against the dollar after China’s Q3 GDP came in at 4.9%. While the GDP reading missed expectations, both industrial output and retail sales posted a stronger than expected growth, assuring markets of the economic recovery in China.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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