The US dollar was increasing for more than 0.5 percent. That was happened in the Tuesday trading session yesterday night. So far, there are three major factors which support it. 

Those factors are the politic conflict in Afghanistan, the internet maintenance plan in China, and the COVID-19 delta variant infection cases. Those trigger the USD purchase as a safe haven. 

When this news was written, the index of USD was increasing by 0.53%. It went to the level of 93.0 as the highest achievement since the 20 of July. The supporters factors are now highlighted. 

Since Joe Biden as a United States president decided to withdraw the American troops from Afghanistan, the Taliban group regaining its control to the government there. 

Market may not Give too Much Reaction

They are regaining Kabul so that it makes the people there are afraid. They try to escape by using the air path or by plane. An analyst from Barings Investment Institute gave his statement. 

His name is Christoper Smart and he said that market should not give a too big reaction got the dramatic events in a country with small economy condition. 

If China and Russia immediately recognize a new Afghan government with the Taliban, then the prestige of the US could be threatened. The function of the USD as a safe haven at stake.

The strengthening of that currency yesterday night also occurred due to the collapse of Asian stocks in connection with China's policy on the internet. That becomes a new issue. 

The Internet Regulation in China

This morning, China's market regulator issued the draft rules. The goal is for stopping the unfair competition on the internet, as Beijing continues its crackdown on the country's technology sector.

The rules published by the State Administration for Market Regulation (SAMR) cover a wide range of areas. They range from bans on how companies can use data, to removing fake product reviews. 

Following this news, technology stocks also fell. On the other hand, the increase in COVID-19 infection delta variants is still becoming a concern. It happens globally and the cases are rising. 

New Zealand has been forced to lockdown once the first COVID-19 case since February has resurfaced. Auckland, the region that reported the case, will be locked down for seven days. 

The Lockdown Impact for the Currencies 

As a result, NZD/USD instantly landslide. The USD is now running its function in line with the global risk increase. Half of that supports come from the uncertainties trio above. 

Those are coming from China, Afghanistan, and the Virus continues to multiply. The falling America’s retail sales is even not becoming an attention because of some reasons. 

One of them is that so many people think that it will unable to warm the Dollar bullisj outlook from the employment market strengthening. As an information, that retail sales felt to -1.1% in July. 

That data is lower than the declining expectation of 0.3% which felt from the previous point in 0 7%. Meanwhile, Pound Sterling was weakening for about 0.4 percent to the level of 1.3790 to the USD. 

A Report from the ONS

The Office for National statistics or ONS reported that the unemployment rate in England is decreasing. It was from 4.8% to become 4.7% in the June 2021 period this year. 

That number is better than the consensus expectation. This recovery is happened because of the employment rate increase for about 95k during the three months periods which is ended in June. 

The Average Earnings Index + Bonus is even increasing by 8.8%. That number is higher than the market expectation which is only 8.6% and beyond the growth of 7.3% in May. 

The strong income growth is potential to support the inflation increase and the BOE interest rate increase prospect. This good employment data can only support the Pound consolidation.