Experts Assume Weaker USD in Short-Term

US dollar bulls were setting the tone in the Asian trade. The USD/JPY pair is approaching a 2-week high. The US dollar surpassed the level of 112.00 against the Japanese yen as investors are pleased about the upgraded US GDP data for the third quarter. Earlier, consumer sentiment was reported to surge to a 17-year high. Japan released flash data on industrial production for October. According to the government data, the industrial output rose by 0.5% last month, way below expectations for a 1.9% expansion. Traders cheered macroeconomic statistics from China. The National Bureau of Statistics reported the business activity in the key manufacturing sector picked up to 51.9 in November, which is the strongest reading in nearly 5 years. Besides, the official non-manufacturing PMI grew to 54.9 in November from 54.3 in October.

Such upbeat data is viewed by traders as evidence of sustainable strength of China’s economy. The Australian dollar, a proxy for China’s performance, rebounded instantly. The AUD/USD pair is trading higher near 0.7580 despite a revival of the US dollar. Analysts say that the US dollar is set for a monthly loss against a basket of currencies in November. Above all, market participants are worried about a standoff between the US and North Korea. In light of the latest launch of a ballistic missile by North Korea, most experts warn that such a provocation could entail cambat operations. Last but not least, investors are annoyed about a slow progress in the US tax legislation. These are weighty reasons why the US dollar could extend a losing streak in the short-term.

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