USD Rises on Global Trade Tension, Aussie Lower After Retail Sales

Forex News

The US dollar remains stable amid growing fears about the prolonged Sino-US trade war, especially after the United States and Canada completed the disputed trade talks on NAFTA without a deal. The dollar index rose by 0.02%. American currency usually gains in times of market turmoil and political tensions, as it is viewed as a safe-haven asset.

The Australian dollar has fallen to the lowest level since early January 2017 amid a large-scale strengthening of the US currency. Also, on the dynamics of trading influenced data on retail sales in Australia for July, which were below the forecast. The AUD/USD pair dropped by 0.2% to 0.7190, after hitting 0.7166 earlier in the day and hovering near a 22-month low.

Data from the Australian Bureau of Statistics (ABS) showed that retail sales in July were flat and this is the weakest result since March 2018. Economists predicted a 0.3% increase in retail sales in July after an increase of 0.4% in June.

The USD/CNY pair rose by 0.04% as the People's Bank of China (PBOC) set the yuan reference rate at 6.8347 versus Friday's fix of 6.8246. The USD/JPY pair lost 0.2% to trade at 110.91.