- EUR/USD trades at 1.1890 versus 1.1860 in early Asia.
- Upbeat China data weighs over the US dollar.
- German Zew survey and Eurozone Labor Cost data could influence the euro.
EUR/USD is again benefitting from the weak tone in the US dollar. The greenback is on the offer with macro data releases, painting a positive picture of the Chinese economy.
Nears 1.19
The pair is trading near 1.1890, representing a 0.22% gain on the day, having picked up a bid at 1.1860 in early Asia.
The upward move gathered steam after China’s retail sales and industrial production for August reinforced the narrative that the world’s second-largest economy is returning to normal and weighed over the greenback.
The S&P 500 futures are currently up 0.18%. The futures tied to Germany’s DAX and UK’s FTSE are also flashing green. As such, the dollar could continue to nurse losses in Europe, keeping EUR/USD better bid.
The immediate resistance is seen at 1.1918 (Sept. 10 high), which, if breached, would expose the 2020 high of 1.2011 reached on Sept. 1. On the data front, the focus would be on the Eurozone and German Zew Survey numbers, Eurozone Labor Cost (Q2), scheduled for release at 09:00 GMT.
Euro will likely come under pressure if Labor Costs’ growth slows more than expected, reviving disinflation fear. Eurozone’s inflation turned negative in August, the official data on Sept. 1 showed.
Technical levels
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