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FOREX-Dollar bid on global growth fears after weak Chinese data

NEW YORK, Aug 15 (Reuters) - The safe-haven dollar bounced on Monday while commodity sensitive currencies including the Australian dollar tumbled after a new batch of disappointing Chinese data bolstered global recession worries. Chinese industrial output, retail sales and fixed-asset investment all fell short of analyst estimates in data published on Monday, as a nascent recovery from draconian COVID-19 lockdowns faltered. "Bad data from China also weighs on recession worries for the rest of the world," said Ipek Ozkardeskaya, market strategist at Swissquote. That pushed down the euro against the greenback, she added. The U.S. dollar index =USD gained 0.45% to 106.15. The euro EUR=EBS eased 0.55% against the dollar to $1.0200. The Australian dollar AUD=D3, which is sensitive to commodity prices and viewed as a proxy for global growth, dropped 1.37% to $0.7022. The offshore yuan CNH= hit 6.7904, the weakest since Aug. 2, after China's central bank cut key lending rates in a surprise move to revive demand. The dollar index has fallen from a 20-year high of 109.29 on July 14 on hopes that the Federal Reserve will slow its aggressive pace of rate increases and that the worst of inflation increases may be behind us. Concerns that the Fed tightening will send the economy into recession has also helped to send U.S. Treasury yields lower. However, Fed officials have maintained a hawkish tone and stressed that it is too soon to declare victory on inflation. “The Fed is telling us they want to tighten financial conditions and the market has eased them, so the Fed is going to have to drive home its point with a larger rate hike,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, adding that he expects the U.S. central bank to raise rates by 75 basis points at its September meeting. Data this week including industrial production on Tuesday and retail sales on Wednesday could also “help ease fears that the U.S. contracted again,” Chandler said, which would boost the greenback. A New York state manufacturing survey on Monday showed a sharp decline in activity in August. ======================================================== Currency bid prices at 9:50AM (1350 GMT) Description RIC U.S. Close Previous Session Pct Change YTD Pct Change High Bid Low Bid Dollar index =USD 106.1500 105.7000 Euro/Dollar EUR=EBS Dollar/Yen JPY=EBS Euro/Yen EURJPY= Dollar/Swiss CHF=EBS Sterling/Dollar GBP=D3 Dollar/Canadian CAD=D3 Aussie/Dollar AUD=D3 Euro/Swiss EURCHF= Euro/Sterling EURGBP= NZ Dollar/Dollar NZD=D3 Dollar/Norway NOK=D3 Euro/Norway EURNOK= Dollar/Sweden SEK= Euro/Sweden EURSEK= (Additional reporting by Joice Alves in London; Editing by Kirsten Donovan) ((karen.brettell@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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