Dollar gains ground on coronavirus, bleak China data

Dollar gains ground on coronavirus, bleak China data

The dollar steadied on Friday as a rise in U.S. bond yields and a weaker risk sentiment due to gloomy Chinese economic data halted a selldown of the greenback.

Chinese retail sales fell against the market’s expectations, while industrial output failed to meet its forecast, showing a  bumpy recovery in the world’s second-biggest economy.

Against the Aussie, the dollar stood at $0.7149 as it came close to breaking a seven-week losing streak. The yen was down 0.9% at 106.84, on course for its weakest week against the dollar.

The kiwi suffered major losses before steadying at $0.6538 as New Zealand faces a new coronavirus outbreak. The country reported 29 new infections, prompting an extension of the lockdown in Auckland. 

The dollar index remains 0.2% lower for the week.

Markets are waiting for the preliminary European GDP and employment data, as well as the U.S. retail sales numbers all due later today. Investors continue to have more confidence in Europe’s rebound rather than the United States’ as the latter is in a deadlock over the next coronavirus relief aid.

The euro steadied at 1.1816 on the dollar and the pound traded at$1.3062 in Asian trade. 

The Aussie stood at a 22-month high of 1.10941 against the kiwi after gaining almost 1% this week.

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