USD/BRL Exchange rate

AUD/USD touches a near two-week top during the Asian session on Monday as a sharp pullback in the US bond yields prompts some USD profit-taking. Moreover, the upbeat market mood supports the risk-sensitive Aussie amid the RBA's hawkish stance. 

USD/JPY slides back closer to last week's swing low, below the 154.00 mark during the Asian session on Monday. Retreating US bond yields drags the USD away from a two-year top high and drives flows towards the lower-yielding JPY, though the BoJ uncertainty could limit losses for the currency pair.

Gold price builds on Friday's positive move beyond the $2,700 mark and climbs to a nearly three-week high on Monday. The USD pulls back from a two-year high on the back of retreating US bond yields and benefits the commodity. 

The Federal Reserve believes inflation is no longer a concern for consumers and the time has come to ensure the rate of change of prices does not decline any further.

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.