The U.S. dollar dropped to its lowest level against a basket of its major rivals in 10 months on Monday and the Australian dollar touched more than two-year high on strong Chinese economic data and doubts that the Federal Reserve would raise interest rates again this year.
China's second-quarter gross domestic product beat forecasts with a rise of 6.9 percent on the year, while retail sales and industrial output from the world's second-largest economy were both strong.
The data bolstered the Aussie dollar given the country's trade relationship with China, market participants said. The Aussie soared to a more than two-year high of 0.7840, with bulls targeting the 200-week moving average around 0.8018, but was last down slightly against the dollar at 0.7819.
The dollar index, a measures of the greenback against a basket of six major rivals, slipped to its deepest trough since last September of 95.018. While it was last mostly flat on the day, it was not far from that 10-month trough at 95.15.
USD/MXN fell near Friday's more than one-year low of 17.530, falling to 17.5340
EUR/USD was almost flat for the day at 1.1476, while USD/JPY bounced from Friday's nearly two-week low of 112.24 to last trade 0.02 percent higher at 112.60.
