Investing.com - The dollar slumped against the world's major global currencies on Monday after official and private-sector data revealed the Chinese manufacturing sector may be on firmer footing these days, which sparked demand for higher-yielding currencies.
In U.S. trading on Friday, EUR/USD was up 0.38% at 1.3036.
Official data in China released earlier revealed the country's manufacturing purchasing managers' index rose to an annual rate of 50.60 for November from 50.20 in the preceding month.
The data met expectations, though the number was strong enough to fuel hopes China will stick with a 7.5% gross domestic product growth target for 2013.
Meanwhile, China's official service-sector purchasing managers' index hit 55.6 in November from 55.5 in October.
Separately, HSBC's final purchasing managers' index for China hit 50.5 in November, beating with analysts calls for a 50.4 final reading for the month.
Demand for riskier asset jumped on the news, which sent the safe-haven dollar falling on Monday.
The dollar did see demand in some parts of the world, especially in Australia.
Weak corporate earnings will likely prompt the Reserve Bank of Australia this week to cut benchmark interest rates to 3.00% from their current levels of 3.25%, according to market talk, which weakened the Australian dollar against its U.S. counterpart.
Gross operating profits at Australian companies dropped more than expected in the third quarter, official data showed on Monday.
In a report, the Australian Bureau of Statistics said that Australian Company Gross Operating Profits fell 2.9% in the third quarter after contracting 0.3% in the preceding quarter whose figure was revised up from a contraction of 0.7%.
Analysts had expected Australian CGOP to contract by 2.5% in the last quarter.
Australian retail sales disappointed as well.
In a report, the Australian Bureau of Statistics said that Australian retail sales remained unchanged in October after gaining 0.5% in September.
Analysts had expected Australian retail sales to rise 0.4% in October.
In Europe, hopes the debt crisis may be abating bolstered the euro against the dollar, further priming the risk-on trading session.
E.U. and I.M.F. officials recently hammered out a plan for Greece to reduce its debt to 124% of gross domestic product by 2020 in exchange for fresh aid payments.
Germany's parliament on Friday gave the accord the green light, and German Chancellor Angela Merkel told the Bild am Sonntag newspaper afterwards the country would be willing to consider writing off Greek debt if Athens can rely on its own revenue and cease borrowing.
Fiscal murkiness in the U.S. kept some investors camped out in safe-haven U.S. dollar positions.
Investors continued to digest negotiations between Congress and the White House over how to deal with the fiscal cliff, a series of tax hikes and spending cuts due to take effect at the same time at the end of this year.
The U.S. nonpartisan Congressional Budget Office has said failure to steer the country away from the fiscal cliff could tip the economy into a recession next year.
Meanwhile, the greenback was down against the pound, with GBP/USD trading up 0.20% at 1.6042.
The dollar was down against the yen, with USD/JPY trading down 0.08% at 82.41 and down against the Swiss franc, with USD/CHF trading down 0.31% at 0.9250.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.19% at 0.9923, AUD/USD down 0.13% at 1.0413 and NZD/USD trading down 0.02% at 0.8200.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.30% at 79.98.
Later Monday, the Institute of Supply Management is to produce a report on manufacturing growth in the U.S.
In U.S. trading on Friday, EUR/USD was up 0.38% at 1.3036.
Official data in China released earlier revealed the country's manufacturing purchasing managers' index rose to an annual rate of 50.60 for November from 50.20 in the preceding month.
The data met expectations, though the number was strong enough to fuel hopes China will stick with a 7.5% gross domestic product growth target for 2013.
Meanwhile, China's official service-sector purchasing managers' index hit 55.6 in November from 55.5 in October.
Separately, HSBC's final purchasing managers' index for China hit 50.5 in November, beating with analysts calls for a 50.4 final reading for the month.
Demand for riskier asset jumped on the news, which sent the safe-haven dollar falling on Monday.
The dollar did see demand in some parts of the world, especially in Australia.
Weak corporate earnings will likely prompt the Reserve Bank of Australia this week to cut benchmark interest rates to 3.00% from their current levels of 3.25%, according to market talk, which weakened the Australian dollar against its U.S. counterpart.
Gross operating profits at Australian companies dropped more than expected in the third quarter, official data showed on Monday.
In a report, the Australian Bureau of Statistics said that Australian Company Gross Operating Profits fell 2.9% in the third quarter after contracting 0.3% in the preceding quarter whose figure was revised up from a contraction of 0.7%.
Analysts had expected Australian CGOP to contract by 2.5% in the last quarter.
Australian retail sales disappointed as well.
In a report, the Australian Bureau of Statistics said that Australian retail sales remained unchanged in October after gaining 0.5% in September.
Analysts had expected Australian retail sales to rise 0.4% in October.
In Europe, hopes the debt crisis may be abating bolstered the euro against the dollar, further priming the risk-on trading session.
E.U. and I.M.F. officials recently hammered out a plan for Greece to reduce its debt to 124% of gross domestic product by 2020 in exchange for fresh aid payments.
Germany's parliament on Friday gave the accord the green light, and German Chancellor Angela Merkel told the Bild am Sonntag newspaper afterwards the country would be willing to consider writing off Greek debt if Athens can rely on its own revenue and cease borrowing.
Fiscal murkiness in the U.S. kept some investors camped out in safe-haven U.S. dollar positions.
Investors continued to digest negotiations between Congress and the White House over how to deal with the fiscal cliff, a series of tax hikes and spending cuts due to take effect at the same time at the end of this year.
The U.S. nonpartisan Congressional Budget Office has said failure to steer the country away from the fiscal cliff could tip the economy into a recession next year.
Meanwhile, the greenback was down against the pound, with GBP/USD trading up 0.20% at 1.6042.
The dollar was down against the yen, with USD/JPY trading down 0.08% at 82.41 and down against the Swiss franc, with USD/CHF trading down 0.31% at 0.9250.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.19% at 0.9923, AUD/USD down 0.13% at 1.0413 and NZD/USD trading down 0.02% at 0.8200.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.30% at 79.98.
Later Monday, the Institute of Supply Management is to produce a report on manufacturing growth in the U.S.