On Monday the dollar fell against other major currencies, with a strong momentum in relation to the euro and the pound sterling.
Wall Street shares continued to weakened, affected by the atmosphere of doubts of the European session.
However, a single fact could not change the direction of the market movement in a few hours. This time China was a protagonist.
The great Asian power, which affects all economic blocks, either due to its import or export, has entered this year into shadow of economic growth, prompting an immediate rise in the dollar on all fronts.
Thus, when the assumption concerning the possible decline in steel production, the hard currencies weakened, while exchange of "goods" was damaged even more, as China seemed to indicate the decline in commodity demand commodities that is taking place at the moment.
On the issue price is far more evident: the euro is back from yesterday’s highs after having failed to break down the 1.32 level. Meanwhile the British pound supported by the release on British inflation index standing in line with expectations, has fallen moderately without losing its short-term bullish direction.
But the Australian dollar is the first one to be affected by the news from its powerful neighbor, whose main customer is falling rapidly breaking the 1.05 point.
The Canadian dollar has not been that much affected, as the European currency was trading in narrow price ranges. The low oil prices, which appear to slow down at these times, have "stuck" loonie quotes on all fronts.
The low of the Dow Jones index futures appears to be more striking as it was traded at 13300 points within the strong bearish trend on the 4H chart. Maybe this time the beginning of significant profit-taking chip stocks, which are now at the 4 years high, will take place without interruption.
Meanwhile, the European stock markets operate with heavy losses, while on Tuesday's session averages they remained in the range between 1.2 and 1.7%. The major indexes are expected to move within downtrends in the nearest future.
The financial world now awaits the key U.S. data: building permits, announced at 8:30 EST. The construction sector indicated a very slow recovery in recent months; published figures do not exceed the highs of 2010. It should be noted that this data is a major concern of the Fed led by Ben Bernanke, who considers the primary building to leave behind once the economic crisis. Indeed, Bernanke will be presented in Washington from 12:45.
