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China’s Strong GDP helps U.S. Dollar Index

By DailyForex.com
The U.S. Dollar Index recovered from recent 14-month lows in Tokyo trading today following the release of information confirming that China’s domestic growth has grown in line with investor and analyst expectation.  Third quarter GDP in China rose to 8.9%, and offered traders an excuse for profit-taking on high yielding currencies, including the Australian Dollar and the single currency Euro.

As reported at 2:45 p.m. (JST) in Tokyo, the U.S. Dollar Index traded at 75.201 .DXY, an increase of .3% and slightly off the multi-month low established yesterday. The U.S. Dollar Index measures the greenback’s value versus a basket of major currencies, and has been struggling over the last several months. 

The Australian Dollar traded at $0.9253, a decline of .2% and off the 14-month peak touched on yesterday; one British bank is predicting that the Australian Dollar will continue to rise to a point where it’s at par with the U.S. Dollar. 

Likewise, the Euro slipped to $1.5000, a loss of .1% and off of the 14-month high established on the EBS trading platform yesterday. Investors believe that the Euro is in line for further gains, but whether or not it can rise to the $1.6040 record high established in July 2008 is still in question. Some market players expect the Euro’s rise to stall around the $1.53-$1.55 benchmark.

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