[BREAKING] Dollar Clings to Gains as Traders Wait for China Growth Data

SINGAPORE (Reuters) - The dollar clung to gains on Monday, supported by investor worries about the looming U.S. election and the fading prospects of any fiscal stimulus beforehand, while the Chinese yuan held firm ahead of the release of quarterly growth data.

The dollar index was steady in early trade, following a 0.7% rise last week when a global surge in coronavirus cases and an impasse over the stimulus package stoked caution.

The risk-sensitive Australian and New Zealand dollars edged higher on expectations that data due later on Monday shows strong growth in China, and on faint hopes that Democrats and the White House could agree on a new spending program.

But enthusiasm was tempered by the opposition of Senate Republicans and as investors focused on what the election outcome means for stimulus later, with a Joe Biden victory seen weakening the dollar by boosting sentiment with big spending.

The Antipodean currencies rose about 0.2% each, with no real reaction from the kiwi to the landslide election victory of Jacinda Ardern’s Labour party over the weekend. The euro, yen and sterling were all steady in morning trade in Asia.

“Fiscal remains the buzzword,” said Chris Weston, head of research at Melbourne brokerage Pepperstone.

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