Australian Dollar Futures Market News and Commentary
The dollar index (DXY00) on Monday fell -0.522 (-0.53%). Jun euro-fx futures (E6M0) closed up +0.0035 (+0.31%), and EUR/USD (^EURUSD) rose +0.0033 (+0.30%). Jun yen futures (J6M0) closed up +0.19 (+0.20%), and USD/JPY (^USDJPY) fell -0.25 (-0.23%).
The dollar index on Monday tumbled to a fresh 2-1/2 month low on street unrest in the U.S. that is negative for the U.S. economy and is undercutting confidence in the U.S. among foreign investors. Also, EUR/USD saw support on higher bund yields. The yen saw support from heightened U.S./China tensions and increased safe-haven demand.
Monday's U.S. economic data was mostly negative for the dollar. The U.S. May ISM manufacturing PMI rose +1.6 to 43.1, weaker than expectations of +2.3 to 43.8. Also, Apr construction spending fell -2.9% m/m, the biggest decline in 1-1/2 years but better than expectations of -7.0% m/m.
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