Dollar Softer as Equities Stage Decent Bounce

The greenback traded softer against most others in G10 Monday as equities recovered and US markets added between 1 - 2%. Much of the upside was driven by further vaccine optimism as the AstraZeneca/Oxford treatment - considered a leading candidate - resumed phase III trials after a routine pause last week.

NZD was the strongest performer throughout, continuing the move following the partial removal of virus restrictions in New Zealand. The NZD/USD rally stopped dead on Fib resistance at 0.6717 which will need to be topped before any test on cycle highs at 0.6789.

GBP stabilised notably after last week's sell-off. The debate surrounding the government's Internal Market Bill has begun, with the government seeing succeeding in the second passing of the Commons this evening. A vote is expected by 2200BST/1700ET.

Highlights Tuesday include RBA minutes, Chinese industrial production / retail sales, UK jobs data for July, German ZEW survey and import/export price indices from the US. ECB's Panetta is also due to speak.