U.S. Dollar Down on Downbeat Consumer Sentiment Data; Yuan Slightly Lower

Monday,   15-Apr-2019   11:48 AM (IST)

The U.S. dollar edged down on Monday in Asia after the University of Michigan reported on Friday that U.S. consumer sentiment was below expectations. The U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.1% to 96.477. The Michigan Consumer sentiment index fell to a reading of 96.9, well below expectations for a reading of 98.1, following two-straight months that saw gains above expectations. The data is unlikely to prompt the Federal Reserve to divert from its wait-and-see approach to monetary policy. Meanwhile, the Chinese yuan is trading slightly lower against the U.S. dollar even after Washington softened demands in the trade deal, Reuters reported on Monday, noting that US negotiators have tempered demands that China curbs industrial subsidies as a condition for a trade agreement. On Friday, China released stronger-than-expected trade and credit data that showed exports rebounded last month, easing concerns of a global economic growth slowdown. Data on fixed asset investment, industrial production and first quarter growth are set to be released on Wednesday. The AUD/USD pair traded near flat at 0.7172. The Reserve Bank of Australia is due to publish the minutes of its latest policy meeting on Tuesday. The jobs report is due later in the week. The GBP/USD pair inched up 0.1% to 1.3095. The EU granted a delay to Brexit until October 31 to allow moew time for U.K. Prime Minister Theresa May to come up with a deal that lawmakers are willing to support. The USD/JPY pair slipped 0.1% to 111.92. This is a holiday-shortened week, with most major financial markets closed on Friday for the start of the Easter holidays.