FOREX-Dollar bid on global growth fears after weak Chinese data

(Adds quotes, details; updates prices; changes byline, dateline; previous LONDON) * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E By Karen Brettell NEW YORK, Aug 15 (Reuters) - The safe-haven dollar bounced on Monday while commodity sensitive currencies including the Australian dollar tumbled after a new batch of disappointing Chinese data bolstered global recession worries. Chinese industrial output, retail sales and fixed-asset investment all fell short of analyst estimates in data published on Monday, as a nascent recovery from draconian COVID-19 lockdowns faltered. "Bad data from China also weighs on recession worries for the rest of the world," said Ipek Ozkardeskaya, market strategist at Swissquote. That pushed down the euro against the greenback, she added. The U.S. dollar index gained 0.45% to 106.15. The euro eased 0.55% against the dollar to $1.0200. The Australian dollar, which is sensitive to commodity prices and viewed as a proxy for global growth, dropped 1.37% to $0.7022. The offshore yuan hit 6.7904, the weakest since Aug. 2, after China's central bank cut key lending rates in a surprise move to revive demand. The dollar index has fallen from a 20-year high of 109.29 on July 14 on hopes that the Federal Reserve will slow its aggressive pace of rate increases and that the worst of inflation increases may be behind us. Concerns that the Fed tightening will send the economy into recession has also helped to send U.S. Treasury yields lower. However, Fed officials have maintained a hawkish tone and stressed that it is too soon to declare victory on inflation. “The Fed is telling us they want to tighten financial conditions and the market has eased them, so the Fed is going to have to drive home its point with a larger rate hike,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, adding that he expects the U.S. central bank to raise rates by 75 basis points at its September meeting. Data this week including industrial production on Tuesday and retail sales on Wednesday could also “help ease fears that the U.S. contracted again,” Chandler said, which would boost the greenback. A New York state manufacturing survey on Monday showed a sharp decline in activity in August. ======================================================== Currency bid prices at 9:50AM (1350 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 106.1500 105.7000 +0.45% 10.962% +106.3400 +105.5400 Euro/Dollar $1.0200 $1.0257 -0.55% -10.28% +$1.0270 +$1.0186 Dollar/Yen 132.7200 133.6100 -0.67% +15.29% +133.5850 +132.5550 Euro/Yen 135.37 136.93 -1.14% +3.88% +137.0700 +135.2900 Dollar/Swiss 0.9437 0.9411 +0.16% +3.33% +0.9466 +0.9409 Sterling/Dollar $1.2082 $1.2135 -0.44% -10.66% +$1.2148 +$1.2051 Dollar/Canadian 1.2930 1.2773 +1.23% +2.27% +1.2934 +1.2774 Aussie/Dollar $0.7022 $0.7122 -1.37% -3.37% +$0.7125 +$0.7012 Euro/Swiss 0.9625 0.9653 -0.29% -7.18% +0.9663 +0.9618 Euro/Sterling 0.8441 0.8451 -0.12% +0.49% +0.8470 +0.8431 NZ $0.6368 $0.6456 -1.34% -6.95% +$0.6456 +$0.6357 Dollar/Dollar Dollar/Norway 9.6965 9.5785 +1.06% +9.88% +9.7070 +9.6040 Euro/Norway 9.8939 9.8095 +0.86% -1.19% +9.9042 +9.8188 Dollar/Sweden 10.3088 10.1833 +0.53% +14.31% +10.3095 +10.1907 Euro/Sweden 10.5106 10.4550 +0.53% +2.70% +10.5176 +10.4644 (Additional reporting by Joice Alves in London; Editing by Kirsten Donovan)