The weekend's G-20 meeting in Scotland came to a close without any encouraging comments about the dollar from those attending. As well, an IMF report that stated the dollar was still robust despite recent depreciation signaled to traders that the greenback could have further yet to fall.
The dollar opened weaker across the board to start the week, and early Australian data showing a jump in Home Loans helped to continue the trend. Aussie home loans came in today at 5.1%, which was well received as opposed to the forecast of 3.1% for the data.
The AUD/USD climbed higher from the 0.9220 open, eventually hitting highs just over 0.9270. NZD/USD was given a head start when a giant dairy producer raised its estimated payouts to farmers. NZD/USD opened almost a big figure higher near 0.7350 and continued to push to highs over 0.7380. These moves helped spark a wave of buying for risk in a sharp contrast from Friday where US employment data helped dampen risk appetite.
With Gold hitting new record highs just over $1105.00 and stronger demand for oil due to the approach of Hurricane Ida in the Gulf of Mexico, commodities and commodity currencies forged the path higher to the rue of the dollar. EUR/USD moved almost a full handle from Friday's 1.4846 close, and looked poised to enter the London session near 1.4940 levels. Inexplicably, the GBP/USD continued its surge north, hitting a two month apex just north of the 1.6730 Asia highs.
The Yen was dumped in Asia as well, with the crosses well bought throughout the day. EUR/JPY flew from 133.40 lows to touch 134.70 highs, GBP/JPY posted a gain of almost 170 pips on its way to 150.88, and AUD/JPY cruised from 82.50 to just over 83.50 for the day.
USD/JPY was back over the 90.00 level for most of the session, looking to enter into the London trade day right at the figure.
While this week has a noted absence of major data, Wednesday is the exception with a glut of it, including; Trade Balance, Industrial Production, PPI, CPI and Retail Sales.
