The US Dollar continues to struggle on Monday following its recording of a loss for last week. A move toward safe haven assets helped push the greenback higher on concerns over the widening rift between China and the United States over China's threat against civil liberties to citizens in Hong Kong. Expected turbulence in the area especially as a result of the US-Sino relationship is resulting in some institutional investors holding defensive positions, given the growing risk. The Aussie Dollar came under pressure as a result of its trade connection with China, while the Kiwi Dollar is also at risk given its relationship.
As of 10:39 am in London, the AUD/USD was trading at $0.6542, up 0.1025%; the pair has ranged from a low of $0.65194 to a high of $0.65508 in this session. The NZD/USD was higher at $0.6101, a gain of 0.1296% and off the session trough of $0.60823. The GBP/USD was higher at $1.2187, up 0.1805%.
German Data Fails to Lift Euro
In the Eurozone, data from Germany suggests an improvement in sentiment there. The May IFO survey of business leaders showed expectations with a reading of 80.1 against a forecast of 75. The Business Climate survey was also better than expected at 79.5, while the current assessment missed the mark slightly with a reading of 78.9 against an expected reading of 80. First quarter GDP was also released today, with the readings generally in line with expectations; GDP on a quarterly basis came in at -2.2%, while the annualized reading was at -1.9%. The EUR/USD was lower after the news, trading at $1.09, down 0.0092%.