{"id":135720,"date":"2021-08-16T12:04:27","date_gmt":"2021-08-16T12:04:27","guid":{"rendered":"https:\/\/precoinnews.com\/?p=135720"},"modified":"2021-08-16T12:04:27","modified_gmt":"2021-08-16T12:04:27","slug":"dollar-trims-recent-losses-after-weak-china-data","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/dollar-trims-recent-losses-after-weak-china-data\/","title":{"rendered":"Dollar trims recent losses after weak China data"},"content":{"rendered":"
LONDON (Reuters) – The dollar crept higher on Monday as disappointing economic activity data from China helped the greenback claw back some recent losses after a shocking slump in consumer sentiment on Friday weakened the U.S. unit.<\/p> Against a basket of other currencies, the greenback edged higher to 92.60 after falling to a one-week low of 92.468 on Friday. Its gains were the most pronounced against the Chinese yuan and the Australian dollar, against which it advanced 0.1% and 0.6% respectively.<\/p>\n But currencies stuck to broad trading ranges as investors were wary of taking large bets in a busy week for central banks.<\/p>\n China\u2019s July retail sales, industrial production and fixed asset investment were all weaker than expected as the latest COVID-19 outbreak weighed on the world\u2019s second-biggest economy.<\/p>\n Long positions on the greenback swelled to their biggest levels since March 2020 suggesting the dollar\u2019s recent move lower was more a temporary setback than the beginning of a structural downtrend.<\/p>\n The release of the Fed minutes this week will be key to the short-term outlook for the greenback especially if it confirms more policymakers are leaning towards tapering its bond purchase plan by the end of the year.<\/p>\n MUFG strategists noted there has been a clear pattern for the U.S. dollar to strengthen modestly after the release of Fed minutes but there is the risk of a bigger market reaction when the Fed\u2019s policy is moving closer to a pivot point.<\/p>\n \u201cIt poses the main event risk of disrupting the quiet period of trading we have seen over the summer period,\u201d they said.<\/p>\n Currency market volatility, even by its already low levels, is nearing 2021 lows thanks to the summer lull.<\/p>\n Elsewhere, minutes from the Reserve Bank of Australia\u2019s latest meeting are due on Tuesday.<\/p>\n The kiwi dollar was 0.21% weaker at $0.70235 ahead of the Reserve Bank of New Zealand\u2019s policy meeting on Wednesday, at which economists widely expect the first hike in the benchmark interest rate since 2014.<\/p>\n In cryptocurrencies, bitcoin edged higher to around $47,500, approaching the three-month high of $48,190 marked over the weekend.<\/p>\n