US dollar rose during Asian session
US dollar rose to an 11-year high against a basket of major currencies after the weekend’s China’s rate cut made investors decrease demand for the Chinese yuan and emerging Asian currencies.
AUD/USD returned below 0.7800 as Australian dollar remained under pressure ahead of the Reserve Bank of Australia’s meeting on Tuesday as the RBA can cut the benchmark rate to 2%. USD/JPY approached 120 yen.
EUR/USD slid to 1.1175. The European Central Bank’s meeting on Thursday is in focus as investors want more information on the QE program which is to be launched this month. GBP/USD is testing support at 1.5400.