• The U.S. dollar hit its lowest level against a basket of major currencies in 10 months on Monday and the Australian dollar hit a more than two-year high on strong Chinese economic data and doubts that the Federal Reserve would raise interest rates again this year.
China's second-quarter gross domestic product topped forecasts with a rise of 6.9 percent on the year, while retail sales and industrial output from the world's second-largest economy were both strong.
The data boosted the Australian dollar given the country's trade relationship with China, analysts said. The Aussie shot to a more than two-year high of $0.7840 AUD=D4, with bulls targeting the 200-week moving average around$0.8018 AUD=D4, but was last down slightly against the dollar at $0.7819.
- The dollar index, which measures the greenback against a basket of six major rivals, touched its lowest since last September of 95.018 .DXY. While it was last mostly flat on the day, it was not far from that 10-month trough at95.157.
- The euro was last mostly flat against the dollar at $1.1465 EUR=, while the dollar recovered from Friday's nearly two-week low against the yen of 112.24 yen JPY= to last trade 0.3 percent higher against the Japanese currency at 112.83 yen.
• President Donald Trump campaigned on cutting the U.S. corporate tax rate to 15 percent, but administration officials said on Monday negotiators engaged in closed-door talks are now shooting for a little over 20 percent because they realize the super-low rate would balloon the federal deficit.
• The United States on Monday launched the first salvo in the renegotiation of the 23-year-old North American Free Trade Agreement (NAFTA), saying its top priority for the talks was shrinking the U.S. trade deficit with Canada and Mexico.
For the first time in a U.S. trade deal, the administration also said it wants an "appropriate" provision to deter currency manipulation by trading partners. The move appeared aimed at future trade deals rather than specifically at Canada and Mexico, which are not considered currency manipulators.
• Brent crude LCOc1 fell 49 cents, or 1 percent, to settle at $48.42 a barrel. U.S. crude CLc1 ended the session 52 cents, or 1.1 percent lower at $46.02. Prices had earlier touched their highest since July 5.
Key technical indicators are bullish, however, with prices rising above the short-term 50-day moving averages, traders said.
Oil prices were about 1 percent lower on Monday as investors continued to await strong indications that an OPEC-led effort to drain a glut was proving effective but output increases in some top producers eased, keeping losses in check.
• Libya's national oil production stood at 1.03 million barrels per day (bpd), little changed from its level since the end of last month, an oil industry official said.
Reference: Reuters
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