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Amid fears of a new outbreak, governments have begun to bring back lockdown measures in some countries such as China and Germany. Australia is the latest, as it prepares to send more than 1,000 soldiers to control the outbreak and ensure quarantine measures are enforced in the country’s second largest city – Melbourne. All this resulted in the US stock market closing down over 2.5%, followed by a negative Asian stock market today, and weakness in early European trades. The USDIndex, as the US dollar representative, was able to close over 97.00, appreciating compared to other major currencies.
The return above the EMA 50 line gives us hope to see the dollar index continue to go up at the next target. The EMA 200 line at 97.90 is in line with the MACD, which is now cutting the signal to above the 0 level. The calendar is packed with announcements of important US economic numbers, including unemployment claims data from last week and important first-quarter GDP figures, which are expected to support the US Dollar to continue to appreciate today. Durable goods orders for May are also due to be released, with May expected to be a month when the economic numbers have recovered significantly.
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