Dollar trims recent losses after weak China data

LONDON (Aug 16) - 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.

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.

But currencies stuck to broad trading ranges as investors were wary of taking large bets in a busy week for central banks.

China's July retail sales, industrial production and fixed asset investment were all weaker than expected as the latest COVID-19 outbreak weighed on the world's second-biggest economy.

Long positions on the greenback swelled to their biggest levels since March 2020 suggesting the dollar's recent move lower was more a temporary setback

Reuters