US dollar gives back gains with tech stocks bid

<p>The US dollar saw some positive flows early in New York trading but it has given them back despite rising long-term yields. </p><p>AUD/USD (below) fell as low as 0.6788 but has rebounded to 0.6820 while the euro fell to 1.1204 before bouncing to 1.1232.</p><p>The main event this week is tomorrow's US retail sales report. Hopes are high with the consensus at +0.5% m/m and the control group at +0.3% m/m. The range of estimates on both are wide with control spanning from -0.1% to +0.6%. Notably, at the bottom of the range is BofA, where economists tend to lean on internal credit card data.</p><p>A soft reading would weigh on the dollar but would cool expectations for rate hikes later this year and could lead to risk appetite.</p><p>The turn in the dollar today was assisted by a rally in tech stocks but that's at risk with the Nasdaq trimming gains to +0.6% in the last 20 minutes. For the remainder of the day, eyes are on stocks.</p>

This article was written by Adam Button at www.forexlive.com.