Dollar Lower As U.S. Retail Sales Plunge, Trade Worries Mount
May 15 2020 - 06:56AM
RTTF2
The U.S. dollar declined against its most major counterparts in
the European session on Friday, as retail sales plunged more than
expected in April and the U.S. government changed rule to block
shipments of semiconductors to Huawei Technologies.
Data from the Commerce Department showed that retail sales
cratered by 16.4 percent in April after tumbling by a revised 8.3
percent in March. Economists had expected retail sales to plummet
by 12.0 percent compared to the 8.7 percent slump originally
reported for the previous month.
Excluding sales by motor vehicle and parts dealers, retail sales
plunged by an even steeper 17.2 percent in April after falling by a
revised 4.0 percent in March.
Ex-auto sales were expected to tumble by 8.6 percent compared to
the 4.5 percent nosedive originally reported for the previous
month.
Trade tensions intensified after the Trump administration said
it is blocking shipments of semiconductors to China's Huawei
Technologies.
The Commerce Department said it was changing an export rule to
"strategically target Huawei's acquisition of semiconductors that
are the direct product of certain U.S. software and
technology."
The greenback fell to 106.86 against the yen, from a 3-day high
of 107.43 seen at 8:00 pm ET. The greenback is seen finding support
around the 101.00 region.
Data from the Bank of Japan showed that Japan producer prices
fell 1.5 percent on month in April - missing forecasts for a
decline of 0.9 percent, which would have been unchanged from the
March reading.
On a yearly basis, producer prices sank 2.3 percent versus
forecasts for a decline of 1.6 percent following the 0.4 percent
drop in the previous month.
The greenback dropped to 1.0851 against the euro and 0.9698
against the franc, after rising to 1.0789 and 0.9745, respectively
in early deals. The greenback may face support around 1.00 against
the euro and 0.90 against the franc.
In contrast, the greenback rose to 1.2145 against the pound, its
highest level since March 27. On the upside, resistance is likely
seen near the 1.19 level.
The greenback hit a new 3-week high of 0.5944 against the kiwi,
from a 2-day low of 0.6016 set at 7:15 pm ET. The greenback is
likely to face resistance around the 0.56 region, if it gains
again.
The greenback bounced off to 1.4110 against the loonie and
0.6418 against the aussie, from its early 2-day lows of 1.4018 and
0.6474, respectively. The next likely resistance for the greenback
is seen around 1.45 against the loonie and 0.60 against the
aussie.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Feb 2024 to Mar 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2023 to Mar 2024