Greenback hovers close to three-week minimum

Greenback hovers close to three-week minimum

On Tuesday, the evergreen buck hovered close to three-week minimums after soft American economic data undermined the case for an early Fed rate lift while the Australian dollar geared up towards the likelihood of another policy easing  later in the day.    

The dollar index against a basket of six counterparts was worth 95.758, having dipped to as low as 95.384 the previous week when it reported its biggest descend for three months.

The index has struggled to gain a meaningful recovery since after the issue of quite poor American GDP growth for the June quarter the previous week.

Weaker-than-expected manufacturing data published on Monday kept holding the US dollar down. Asie from that, the influential Institute for Supply Management's index of national factory activity sagged to to 52.6 in July from June’s reading of 53.2, below market hopes for 53.0.

As for Fed funds futures, they’re pricing in less than a 40% probability  of an interest rate lift by December.

Aussie heads south after data

The Australian dollar retraced earlier weakness notwithstanding downbeat trade as well as building approvals data and the Japanese yen sagged on the finance minister’s comments.

The currency pair AUD/USD was worth 0.7537, tumbling 0.01%, while USD/JPY traded at 102.67, showing a 0.24% rise after Japanese Finance Minister Taro Aso told exchange rates were demonstrating very nervous moves and that he was attentively watching currency movements. Aside from that, Prime Minister Shinzo Abe's government was about to approve ¥13.5 trillion in fiscal measure to boost the economy and also prices.

In Australia, June’s building approvals sagged 2.9%, compared to a 0.5% revenue seen month-on-month as well as the trade balance widened to a deficit of A$3.195 billion right from an expected deficit of about A$2 billion as well as last month’s figure of A$2.418 billion.

Later, New Zealand published inflation expectations for the second quarter, including the previous figure 1.6% quarter-on-quarter. The currency pair NZD/USD was worth 0.7172.


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