The Australian dollar slid to a six-month low on Monday as worries about slower Chinese growth hit a nerve, but other major currencies held their ground ahead of this week's Federal Reserve policy meeting.
Investors took aim at the Aussie, usually used as a liquid proxy for China plays, after data on Saturday showed factory output in Asia's economic powerhouse grew at the weakest pace in nearly six years in August. Growth in other key sectors also cooled.
The Aussie briefly dipped below 90 U.S. cents for the first time since March 20, before edging back up to $0.9010. It has tumbled four cents in the past week. Traders said the speed and depth of its recent decline and the proximity to major support levels seen just under 90 cents may have saved it from a more pronounced reaction to the Chinese data.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.