The dollar reached on Tuesday a new two-year peak in early trading, rising to face the dollars of australia and new zealand after the Reserve Bank of Australia lowered its key rate to a historic low of 0.75%.
The dollar rose nearly a cent against the aussie after the RBA’s decision, which followed the economic growth the slowest recorded during the second quarter of the decade, another consequence of the trade war us-china, which has curbed chinese demand for australian produce.
The dollar index, which measures the greenback against a basket of six major currencies developed, has reached 99,21, a level close to the top of 99,33 reached last month. It is at this point that he reached a peak in ten years against the aussie, a summit which should soon be tested.
“The other price movements may depend on the remarks made by the governor (Philip Lowe at a dinner in Melbourne later in the day, during which it may choose to fine-tune the forecast for future rate movements or to specify more precisely the concentration on the consumption expenditure, compared to the recent attention on the labour market,” said Robert Carnell, chief economist at ING for the Asia-Pacific region, in a note to clients.
The dollar also rose against the yen after a survey Tankan worse than expected, while it appreciated slightly against the euro and the pound sterling, at the approach of the decisive moment in the Brexit. The Daily Telegraph has announced on Tuesday that the Prime minister Boris Johnson would send Tuesday to the EU its detailed plans to avoid a border lasts on the island of Ireland after his speech to the annual conference of the conservative party.
According to the broadcaster, irish RTE, these projects would involve a series of centres of clearance installed a few kilometers from the border. This effectively creates a border lasts without wearing the name and violated the good Friday agreement that the Uk and the EU have both promised to respect.
At 12.30 pm, the euro was 1,0905 USD, slightly up compared to the new two-year low reached at the beginning of the negotiation to 1,0879. The book is briefly outlined below 1,2300 USD, while the swiss franc and the Swedish krona have also been under pressure after the sharp decline of the indices of their respective directors of national procurement, which indicated a contraction in the manufacturing sectors of the two countries.