On Tuesday, August 3, the US dollar fell due to the recently released manufacturing data for July. The Dollar Index, which trails the greenback in opposition to its six other rival currencies, crashed 0.02% to 92.043.
Last Monday, the July US manufacturing purchasing managers’ index was released at a better-than-expected 63.4 figure. In addition, the ISM manufacturing employment index for July came at 52.9, surpassing estimates. Meanwhile, the ISM manufacturing PMI came at a lower-than-anticipated record of 59.5. An analyst stated that this reading is still very strong from a historical perspective.
However, the US Treasuries said the market is worried about the peak growth and further slowdown. Also, the US yield slipped shortly after the ISM released the data, which slowed for the second consecutive month.
On another note, a medical expert stated that the coronavirus infections in Louisiana and Florida reached their highest pandemic peak. As a result, it scraped the excitement over a $1 trillion infrastructure investment bill that is ready for approval this week.
Moreover, the US Centers for Disease Control and Prevention described the delta variant as more transmissible than flu. The agency added that the deadly variant is also as contagious as chickenpox. Now, it is dominating several Asian countries which were once thought of as successful in containing the deadly disease.
Currency Exchange Rates
Furthermore, in other currency exchange rates, the USD/JPY plummeted 0.07% to 109.20. An analyst said it is the pair’s lowest level since May of this year. He said that one of the reasons for its fall was Japan’s prolonged state of emergency. Currently, it covers Tokyo, Okinawa, Osaka, Chiba, Kanagawa, and Saitama prefectures.
On the other hand, the USD/CNY climbed 0.05% to 6.4656. China is scrambling to curb its latest coronavirus outbreak, which continuously spreads from the coast to inland cities.
Also, the AUD/USD pair jumped 0.10% to 0.7368 as the RBA will release its policy decision later this day. Another expert said that it is likely to reverse its earlier decision to start tapering assets.
Likewise, the NZD/USD pair smashed 0.37% to 0.6994 as the RBNZ announced to begin its consultation in tightening the mortgage lending standards.
Additionally, the EUR/USD, USD/CHF, and USD/CAD all progressed 0.06% to 1.1876, 0.03% to 0.9058, and 0.07% or 1.2520, respectively.
