What you need to know on Wednesday, August 18:
The dollar rallied on the back of risk aversion, exacerbated by dismal US data. Retail sales in the country fell 1.1% in July, much worse than expected. Stocks tumbled, although government bond yields posted modest intraday declines.
Commodity-linked currencies were the worst performers, with AUD / USD down to a new 2021 low of 0.7242. The USD / CAD peaked at 1.2648, its highest level in nearly a month.
Upbeat UK employment data fell short of supporting GBP / USD, which is trading near a daily low of 1.3725. The EUR / USD pair is again poised to challenge the 1.1700 threshold.
Gold fell after advancing to $ 1,795.52 a troy ounce, ending the day lower around $ 1,782. Crude oil prices also lost ground with WTI currently trading around $ 66.40 a barrel.
During the upcoming Asian session, Australia will release the second quarter wage price index, while the Reserve Bank of Australia will announce its monetary policy decision. Later in the day, the United States Federal Reserve will publish the Minutes of its last meeting.
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