The Aussie dollar gave up small early gains and fell after economic data from China, Australia’s biggest trading partner, fell short of analysts’ expectations.
Chinese data added to signs that China’s recovery from Covid-19 outbreak restrictions has faltered, pushing the yuan to its lowest level in two months.
The dollar rebounded last week, due to increased demand for it as a safe haven, amid weak Chinese economic data, and due to a sudden jump in inflation expectations for house prices. consumption in the United States, which reignited fears of another interest rate hike in June.
Investors have been affected this week by ongoing discussions over the debt ceiling, which US Treasury Secretary Janet Yellen said the country could hit on June 1.
President Joe Biden has said he’s confident a deal can be reached in time for a scheduled meeting with congressional leaders later Tuesday, but Republican House Speaker Kevin McCarthy said the two sides remain distant .
currency movements
The dollar index, which measures the performance of the US currency against a basket of six major currencies, fell 0.15% to 102.28 points as of 0830 GMT, after falling from its all time high last night. level in five weeks.
The euro is seeing narrow moves around $1.0870 on Tuesday, after rising from its lowest level in five weeks last night.
The pound also fell 0.13% to $1.2515, after rising 0.67% on Monday.
The yen moved away from its lowest level in nearly two weeks, with the dollar losing 0.22% to 135.82 yen, after hitting 136.32 on Monday.
Yields on 10-year US Treasuries fell to around 3.49% in Tokyo from 3.511% last night.
The dollar rose 0.2% to 6.9723 yuan in offshore trade, after touching 6.9749 yuan on Monday for the first time since March 10.
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