US FX WRAP: Mixed USD performance to start the week amid higher US yields; AUD outperforms on strong Chinese data

DXY was slightly firmer on Monday and saw mixed performance vs. G10 FX peers. There was no tier-1 US data, nor is any due this week, and no Fed speak given the blackout period ahead of next week's confab. In what was a day of light newsflow, geopolitical headlines were the focus, as US President Trump eased Russian sanctions, while Al Araby Al Jadeed reported that a breakthrough is expected to be announced this week to halt the escalation between Washington and Tehran, although it added that the two sides are being urged to "make concessions" to prevent a new war.

High-beta FX outperformed, with the Antipodeans and the Loonie gaining vs. the Dollar, buoyed by risk-on sentiment given the rebound in AI-related names on Monday, as well as by region-specific factors. For the Aussie, strong Chinese data overnight offered support. Out of Canada, inflation was cooler than expected and tempered odds of a rate hike next week, with money markets now assigning a 68% chance of a hike (prev. 74% pre-release). Some mild pressure was seen in the Loonie post-release.

GBP, EUR, CHF and JPY all saw losses to varying degrees against the Buck, albeit with little currency-specific newsflow. In Europe, sentiment was hit by the French civil unrest and elevated Dutch TTF prices.