US Dollar Strengthens Broadly on Improve Consumer Confidence - 29.5.2013

The greenback value on its major peers jumped sharply yesterday amid much better than expected consumer confidence data for May and higher than forecasted S&P Case Shiller index. The US dollar index rose from support at 83.68 to resistance at 84.33, reflecting the increased value. In addition due to improved fundamentals, chances for FED to partly withdraw from asset purchases are increasing and that is further underpinning the US dollar. The Euro against the greenback was heavier due to stronger US economic news and dropped from cap at 1.2946 to floor around 1.2841.

Against the Japanese Yen the US dollar also advanced from yesterday support at 100.82 to 102.51, first due to strengthening of US confidence and secondly amid NIKKEI 225 kept recovering today by inching up to 14500 but then retreating to close at 14326.46, which is 0.10% higher than yesterday. Furthermore the annualized Retail Sales for Japan decreased by 0.1% in April, better than minus 0.4% rate decrease that was expected and lower decline than previous month. As of writing the USDJPY penetrated support at 101.98 on increased selling pressure and is currently trading at 101.64.

Elsewhere, the Aussie was further weighed as the IMF cut Chinese growth for 2013 from 8% to 7.75% and for 2014 from 8.2% to around 7.75%. The AUDUSD declined to 0.9527 from yesterday peak around 0.9693, breaching key support at 0.9593 and falling to new low since October 2011.