By Gina Lee
Investing.com – The dollar was flat on Wednesday morning in Asia, recovering some of its previous losses amid disappointing US data.
fell to 84.8, its lowest level since May 2014, when COVID-19-induced high unemployment contributed to the decline. The reading was much lower than expected in ’93, compiled by Investing.com, and was also lower than July’s reading of 91.7.
On the back of Tuesday’s disappointment, data to be released later in the day is expected to show that they have fallen in July, with 4.3% month-on-month growth for July. The order grew by 7.6% month-on-month in June.
Attention is now focused on US Federal Reserve Chairman Jerome Powell and his speech at Thursday’s Jackson Hole symposium, as a guide to the Fed’s response to the numbers.
Tracking greenbacks against a basket of other currencies rose 0.05% to 93,062 out of 10: 145PM ET (3:15 AM GMT).
But some investors argued that the measures announced by Powell will continue to contribute to a weaker dollar.
I expect Powell to use forward-looking guidance to send an informal message that interest rates will remain low for a long time, which feeds into dollar weakness. We can say that we are in a long-term correction of excessive dollar strength, “Minori Uchida, head of global market research at MUFG Bank, told Reuters.
The pair rose 0.06% to 106.42.
The pair rose 0.08% to 0.7199. But with the number of COVID-19 cases in Victoria State rising again, hitting 149 cases on Wednesday, the AUD is expected to remain in a narrow range.
The pair rose 0.18% to 0.6558.
The pair fell 0.10% to 6.9048, with markets continuing to monitor US-China ties after US and Chinese officials confirmed the Phase 1 trade deal on Monday.
The pair lowered 0.06% to 1.3142 Investors will also keep an eye on the Brexit trade negotiations between the United Kingdom and the European Union, which have so far seen a lack of progress.
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