Risk currencies on the back foot even in early European trading

The aussie and kiwi are weighed lower as poor Chinese data weighs

It is a mixed start to the session for the dollar as the greenback is posting gains against the likes of the loonie, aussie and kiwi while holding weaker against the rest of the major bloc. Equities had a stellar day overnight as US stocks roared - S&P 500 gained by nearly 5% - but that sort of dead cat bounce isn't something that wipes away all the recent negativity and only adds to the notion that the selling was overdone but not wrong.

Asian equities have also improved slightly with the Nikkei closing with gains of almost 4% but Chinese stocks have ended the day at session lows as US equity futures also wiped out their earlier gains with E-minis down 0.3% now.

Couple that with poor Chinese data earlier, risk currencies are still finding it tough on the day so far. Oil being down 0.8% isn't helping the loonie's case either. As liquidity remains thin until the end of this week, expect more volatile movements to come and the market focus right now is all on risk so watch out for equities sentiment to drive markets.

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