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U.S. Dollar Continues to Increase Significantly, Driven by The U.S. Economic Recovery Optimism

The dollar rebounded on Wednesday's Asian market trade. The U.S. dollar getting higher as well as increasing expectations of the U.S. economic recovery from the Covid-19 pandemic that supported the greenback.

The yield on US debt for approximately 10 years shows the biggest increase this week, by attracting investors to participate in a massive auction worth $38 billion.

Meanwhile, uncertainty about the latest U.S. stimulus inhibits the dollar from rising. On the other side, the market also wants to see if Congress can reach a consensus for that action.

The dollar index on today's trades has increased by 0.13% to 93.765. The USD/JPY pair increased by 0.14% to 106.62. The AUD/USD pair decreased by 0.13% to 0.7133. The NZD/USD pair decreased by 0.18% to 0.6564. The Antipodean currencies (AUD and NZD) continued to trade amid concerns over the Covid-19.

Australia's Consumer Sentiment Index suffered a downfall, as Westpac Consumer Sentiment Index decreased by 9.5% to 79.5 in August. Melbourne's second largest city is currently under the restrictions of the fourth stage COVID-19, and the country reports the largest increase in daily infections this week.

Meanwhile, Auckland had a lockdown when there are four new cases related to Covid-19. This case is the first in New Zealand in the last three months. The Reserve Bank of New Zealand interest rate policy decision are following expectations and remained unchanged at 0.25%.

The USD/CNY pair increased by 0.22% to 6.9563. The GBP/USD pair decreased by 0.10% to 1.3035. The Pound was under pressure after this week's labor market data release. The data missed the expectation and indicated that the loss of jobs in the UK was at the highest level in more than a decade in the last quarter.