The US dollar rebounded as investors' focus in the Asian session shifted to the publication of Chinese economic data that is expected to show slower growth in the fourth quarter.
The greenback continued gains recorded at the end of last week’s trading which may be due to profit -taking activity by investors against other major currencies.
The currency giant is fundamentally strong due to market optimism that the Federal Reserve (Fed) will raise interest rates faster to curb inflation.
U.S. retail sales data released on Friday, unfortunately recorded a contraction in December by down 1.9% from a revised 0.2% in November.
Although disappointing, it did not stop the US dollar from rising again in line with the increase in US 10 -year bond yields.
Meanwhile, the Aussie dollar and kiwi traded gloomily as investors awaited the release of China’s economic report for the fourth quarter.
In China, bonds rose and the yuan slipped after the central bank lowered its medium -term lending facility rate to 2.85% for the first time since April 2020.
European currencies also posted declines, showing the pound trying to maintain its consolidation at 1.3660, and the euro trading at around 1.1400 against the USD.
