October 28, 2021

Beware of USD Traders! US Economic Data Awaits New York Session

 In addition to the euro, the greenback was also the main focus of investors ahead of the publication of US economic growth data in the New York session.

The US economy is expected to show slower growth in the third quarter as it is impacted by the Delta variant and global supply chain constraints that nearly dampen consumer spending.

US Gross Domestic Product (GDP) growth is expected to increase by 2.7% in the third quarter, after registering an expansion of 6.7% in the previous quarter.

During the European session, the dollar index traded steady at 93.88 against a basket of major currencies.

Meanwhile, the 10 -year US treasury yield fell lower at 1.54%, causing the greenback dollar to stagnate and continue to hover around the same price.

Meanwhile, the Aussie dollar traded stronger around a three -month high supported by a surge in Australian bond yields to the highest level since mid -2019 after the central bank did not buy bonds as investors expected today.

Last week the Australian Central Bank (RBA) bought government bonds to push yields back below 0.17%. Today, the central bank is supposed to buy the bonds again but there is no news of the purchase, and this in turn pushes the bond yield to the level of 0.5%.