Soft China economic data and Fed policy speculation push the USD lower, while European equities edge up in light trading.
The USD fell early Monday as weaker-than-expected China economic data and anticipation of Federal Reserve signals at next week’s Jackson Hole symposium weighed on sentiment. EUR/USD rose 0.2% to 1.1590, while AUD/USD hit a two-month high of 0.7125, up 0.6%.
China’s July retail sales and industrial output slowed, with new home prices extending declines. The stats bureau cited extreme weather as a factor. US economic data remains light this week, leaving traders focused on Fed policy cues.
European indices traded modestly higher, with S&P 500 futures up 0.1%. WTI crude gained 0.5% to $82.77, gold rose 0.6% to $4,402, and Bitcoin climbed 0.9% to $63,603. US 10-year yields edged up 1 bps to 4.686%.