USD Regains After Pullback
The dollar sank to an almost two-week low versus a basket of its peers on Tuesday, moving in tandem with retreating Treasury yields from recent peaks despite signs of a robust U.S. economic recovery. (Reuters) The dollar index wallowed at its lowest level since March 25, slipping further in early Asian trading following a 0.4% decline on Monday. However, in terms of the US Dollar Index (DXY), the greenback managed to regain the strength and advances on turnaround Tuesday. The US yields also creeped higher and recent positive results from key fundamentals collaborate with the upbeat scenario surrounding the USD.
The AUD/USD pair fell during the early European session and refreshed daily lows. The pair struggled to capitalize on the post-RBA uptick to one-week tops due to dollar regained demand. The Reserve Bank of Australia left rates unchanged as expected.
Asian stocks and US futures are on the back foot amid worries that China would cut loan growth, to prevent credit bubbles.
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