Forex - Dollar gains as Chinese trade data disappoints

Published 07/09/2012, 10:34 PM
Updated 07/09/2012, 10:36 PM
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Investing.com - The dollar traded higher against the major global currencies on Tuesday as investors snapped up safe-haven greenback positions on news Chinese import data missed estimates.

Investors also took up dollar positions ahead of policy statements from a eurozone meeting of finance ministers taking place in Brussels.

In Asian trading on Tuesday, EUR/USD was trading down 0.07% at 1.2303.

In China, imports in June rose 6.3% from a year earlier, well below market calls for a 11-12.7% increase.

The country's trade surplus hit USD31.7 billion, better than expected.

The news sparked demand for the greenback early in the session, as the numbers came on the heels of weaker-than-expected consumer price data out of China.

Inflation in China in June rose 2.2% on year, a little lower than market calls for 2.3%.

Japan on Monday reported core machinery orders fell 14.8% in May, far worse than market expectations for a decline of 2.4%.

The U.S. currency traded higher as the market awaited a policy statement from a eurozone meeting of finance ministers taking place in Brussels.

Weak investor sentiment out of Europe pressured the euro and other currencies down against the greenback as well.

The German Sentix research institute reported that its investor sentiment index for the entire eurozone economy fell to -29.6 in July from -28.9 in June, the worst level in three years.

Markets were forecasting a -26.7 reading.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.11% at 1.5509.

The dollar was down against the yen, with USD/JPY trading down 0.03% at 79.54, and up against the Swiss franc, with USD/CHF trading up 0.12% at 0.9766.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.10% at 1.0202, AUD/USD down 0.24% at 1.0183 and NZD/USD down 0.19% at 0.7948.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% at 83.41.








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