Forex – Dollar in Doldrums as Trade-Sensitive Currencies Soar

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Investing.com – The dollar fell against its rivals Monday as trade-sensitive currencies rallied on the back of the temporary U.S.-China trade truce, while mixed U.S. economic data also weighed.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.36% to 96.90.

ISM manufacturing data for November showed an uptick to a reading of 59.3, beating expectations for 57.6. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.

Construction spending unexpectedly fell 0.1%, undershooting economists’ forecast for a 0.4% increase.

The duo of reports did little to help the dollar mount a recovery as traders fled the greenback in favor of risk-sensitive currencies on easing U.S.-China trade worries after both parties agreed to 90-day truce.

AUD/USD, often viewed as a barometer of broader risk sentiment as well as a proxy for China-related risks as China is the largest buyer of Australia’s key exports, rose 0.73% to $0.7358.

Read more at : https://www.investing.com/news/forex-news/forex–dollar-in-doldrums-as-tradesensitive-currencies-soar-1708957

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