China’s industrial production, retail sales and fixed asset investment missed analyst estimates in data released Monday, as the nascent recovery from the COVID-19 lockdowns faltered.
The dollar Index, that measures the performance of the greenback against six pairs, it rose 0.6% to 106.13 units. The euro It was down 0.6% against the dollar at $1.0200.
The Australian dollarwhich is sensitive to commodity prices and is considered an indicator of global growth, it fell 1.37% to $0.7022.
While, the international yuan reached 6.7904 per dollar, the lowest level since August 2after China’s central bank cut key interest rates in a surprise move to revive demand.
The dollar index fell in recent days from a 20-year high of 109.29 on July 14 on bets that the Federal Reserve will slow its aggressive pace of rate hikes. and that the worst of the acceleration in inflation may be behind us.
Concerns that the Fed’s monetary tightening will push the economy into recession have also helped push US Treasury yields lower.
However, Fed policymakers maintained an aggressive tone, emphasizing that it is too early to declare victory over inflation.
This week’s data including industrial production on Tuesday and retail sales on Wednesday could also “help ease fears that the US has contracted again,” which would boost the dollar, said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
A New York state manufacturing survey on Monday showed a sharp drop in activity in August.
Source: Ambito
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