The U.S. dollar appreciated against its major opponents in the European session on Tuesday, amid a rise in treasury yields after the release of weaker than expected U.S. retail sales data for July.

Data from the Commerce Department showed that retail sales slumped by 1.1 percent in July after climbing by an upwardly revised 0.7 percent in June.

Economists had expected retail sales to dip by 0.3 percent compared to the 0.6 percent increase originally reported for the previous month.

Excluding the steep drop in sales by motor vehicles and parts dealers, retail sales fell by 0.4 percent in July after jumping by 1.6 percent in June. Ex-auto sales were expected to inch up by 0.1 percent.

Risk sentiment deteriorated as a spike in COVID-19 cases in Asia and elsewhere raised fears of a slowdown in global economic growth.

Traders focus on a speech from Fed Chair Jerome Powell for more clues on the timing of a withdrawal of monetary stimulus.

The greenback rose in the Asian session amid safe haven appeal, as investors worry about the spread of the Delta variant of the coronavirus and its potential impact on global growth.

The greenback advanced to a 4-day high of 1.1732 against the euro from Monday's close of 1.1777. Should the currency rallies again, 1.16 is possibly seen as its next resistance level.

Flash estimate from Eurostat showed that the euro area economy recovered from a technical recession in the second quarter.

Gross domestic product grew 2 percent sequentially, in contrast to a 0.3 percent drop in the first quarter. The quarter-on-quarter growth rate matched the flash estimate released on July 30.

The greenback firmed to 1.3753 against the pound, its highest level since July 26. The pound-greenback pair had ended yesterday's trading session at 1.3841. The greenback may face resistance around the 1.34 region, if it gains again.

Data from the Office for National Statistics showed that the UK unemployment rate declined in the second quarter.

The unemployment rate dropped 0.2 percentage points to 4.7 percent in the second quarter. This was slightly below the expected rate of 4.8 percent.

The greenback rebounded to 109.56 against the yen, from a low of 109.12 seen at 3:00 am ET. The pair had closed Monday's deals at 109.20. Next key resistance for the greenback is found around the 112.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary activity rose for the first time in three months in June.

The tertiary activity index rose 2.3 percent month-on-month in June, after a 2.9 percent decrease in May.

After falling to nearly a 2-week low of 0.9100 at 8:20 am ET, the dollar bounced off to 0.9126 against the franc. At yesterday's trading close, the pair was quoted at 0.9122. Further rally in the currency may challenge resistance around the 0.93 region.

The greenback moved up to near a 3-week high of 0.6904 against the kiwi and a 9-month high of 0.7262 against the aussie from yesterday's closing values of 0.7016 and 0.7335, respectively. The greenback is likely to locate resistance around 0.68 against the kiwi and 0.71 against the aussie.

The greenback rose to its highest level since July 21 against the loonie, at 1.2631. The greenback was trading at 1.2569 against the loonie at yesterday's close. Immediate resistance for the dollar is likely seen around the 1.28 level.

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