On Tuesday, the evergreen buck hovered close to three-week minimums after soft American economic data undermined the case for an early Fed rate lift while the Australian dollar geared up towards the likelihood of another policy easing late4r in the day.
The dollar index against a basket of six counterparts was worth 95.758, having dipped to as low as 95.384 the previous week when it reported its biggest descend for three months.
The index has struggled to gain a meaningful recovery since after the issue of quite poor American GDP growth for the June quarter the previous week.
Weaker-than-expected manufacturing data published on Monday kept holding the US dollar down. Asie from that, the influential Institute for Supply Management’s index of national factory activity sagged to to 52.6 in July from June’s reading of 53.2, below market hopes for 53.0.
As for Fed funds futures, they’re pricing in less than a 40% probability of an interest rate lift by December.
