Rumors From China Trigger Price Reversals In The Market!


 Major currencies reversed the losses recorded earlier in the week by rising again on Tuesday.

The opening of the European session saw most major currencies, particularly the Aussie and New Zealand dollars surge higher following rumors of the reopening of Covid-19 restrictions in China.

This follows protests by protesters in China that have rocked the world over the weekend, causing risk sentiment to dominate markets widely.

However, investors are starting to weigh in on Global Times commentator Hu Xijin's tweet that China may emerge from the Covid shadow sooner than expected.

In fact, the report that China will make an announcement at 3pm this afternoon also helped lift market sentiment, despite the fact that it was just an announcement about the vaccination of the elderly.

Following that optimism, the Aussie dollar and the kiwi showed gains since the Asian session and continued into the European session.

Also showing an increase is the trading of the Chinese yuan in line with other Asian stock markets such as the Shanghai Composite and Hong Kong's Hang Seng.

In addition, the euro and pound also traded higher with moderate gains, trying to erase the losses recorded earlier.

With the resurgence of major currencies, the greenback showed a decline at the start of the European session.

Against most major currencies, the dollar index, which measures the greenback's strength, was down around 106.15.