The U.S. dollar strengthened against its major counterparts in the Asian session on Tuesday, as continued U.S.-China trade tensions, protests in Hong Kong, the defeat of President Mauricio Macri in Argentina raised the appeal of safe-haven assets.
Asian markets slipped as China bank lending data disappointed and the People’s Bank of China guided the yuan lower for a ninth straight session, adding to fears of a global currency war. The new U.S. tariffs on some $300 billion in Chinese imports would go into effect on Sept. 1.
The Argentine peso collapsed following Macri’s stunning defeat in primary elections over the weekend.
Operations resumed at Hong Kong airport on Tuesday morning, a day after a pro-democracy protest brought the air transport hub to a complete standstill.
The U.S. consumer inflation is due later today, with economists expecting a rise of 0.3 percent on month in July.
Investors await the U.S. Federal Reserve’s annual symposium at Jackson Hole later in the week for more clarity on the future course of interest rates.
The greenback strengthened to 105.58 against the yen, from a low of 105.16 hit at 5:30 pm ET. If the greenback rises further, 107.00 is seen as its next resistance level.
Data from the Bank of Japan showed that Japan producer prices were flat on month in July, following the 0.5 percent drop in June.
On a yearly basis, producer prices sank 0.6 percent after easing 0.1 percent in the previous month.
Reversing from a low of 1.1220 seen at 5:45 pm ET, the greenback edged higher to 1.1182 against the euro. The next possible resistance for the greenback is seen around the 1.10 level.
The greenback that closed yesterday’s trading at 0.9692 against the franc advanced to 0.9727. The greenback is likely to find resistance around the 0.99 level.
The greenback ticked up to 1.2042 against the pound from yesterday’s closing value of 1.2075. The greenback is seen finding resistance around the 1.19 level.
The greenback firmed to a 4-day high of 1.3253 against the loonie, compared to 1.3238 hit late New York Monday. On the upside, 1.34 is possibly seen as the next resistance level for the greenback.
Looking ahead, U.K. ILO jobless rate for three months ended June and German ZEW economic sentiment index for August are scheduled for release in the European session.
In the New York session, U.S. consumer price index for July is due.
The material has been provided by InstaForex Company – www.instaforex.com