Recent developments show that the performance of the US dollar was still trading weak on Tuesday, but the New Zealand and Australian currencies became the choice of ‘traders’ driven by action from the Central Bank.
The kiwi rose 0.6% against the US dollar to $ 0.7007, the biggest strengthening among G10 currencies today after New Zealand's central bank on Tuesday said it would soon begin negotiations on ways to tighten mortgage lending standards. This is part of a move to control the rising housing market and protect home buyers.
On the other hand, the Australian dollar also performed well after the Reserve Bank of Australia maintained plans for a bond-buying program, easing market concerns over an increase in Covid-19 cases.
The US dollar index, which measures the strength of the greenback against major currencies, traded slightly stronger, rising 0.03% to a trading level of 92.07. Among those that pushed the US dollar after trading depreciated was a report of manufactured goods orders that rose 1.5% to $ 506 billion in June.
The Canadian currency traded down three days in a row against the US dollar amid concerns over the spread of the Delta variant's Covid-19.
Market researchers have lately argued that the decline in U.S. treasury yields is a sign that concerns over economic growth. U.S. 10 -year Treasury Yield declined on Monday following an ISM report showing U.S. manufacturing growth. in July slowed for the second month in a row.
The market is still guessing the development of the US dollar in the near future due to the contagion of the Delta Covid-19 variant. In the United States, admissions to COVID-19 hospitals in Louisiana and Florida have peaked. This is because the development of the Delta variant will pose a risk to the economy.
