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U.S. Greenback Stands Firm as Traders Seek Shelter

The dollar discovered broad support Monday as global political skepticism and fears over a widening of the Sino-U.S. trade conflict kept traders in safe harbors ahead of a slew of world financial indicators this week.

The dollar was stable against most leading currencies. It stayed firm against the Japanese yen at 108.93 per greenback and sterling at $1.2287, while easing very barely against the euro to $1.0932.

It gained against riskier, trade-uncovered currencies such as the Australian greenback and the Chinese yuan. The biggest loser was the New Zealand greenback, which dropped half a percentage point as enterprise confidence hit its weakest in over 11 years.

In Asian hours, traders shrugged off news that the U.S. administration was contemplating de-listing Chinese firms from U.S. stock markets after the reports had been hosed down by Treasury delegates.

Elsewhere, factory activity surveys in China advised there have been some signs of improvement this month, although analysts believe the gains can’t be sustained and forecast additional financial weakness.

In Australia, forecasts for a rate cut Tuesday firmed with gathering economic despair. Markets are pricing a more than 75% chance the Reserve Bank of Australia will pare its cash rate for the third time in 2019.

German inflation, British economic progress, and U.S. manufacturing signs are all due later Monday, with U.S. employment figures at the end of the week. Anything short of expectations poses a threat to fragile sentiment.

The New Zealand greenback plunged as far as $0.6257, very close to a four-year low, as a study confirmed sour business attitude and made a case for a rate cut.