U.S. Dollar Falls On Coronavirus Vaccine Hopes

The U.S. dollar depreciated against its major counterparts in the Asian session on Monday, as AstraZeneca's renewal of its coronavirus vaccine trial underpinned sentiment.

Oxford University announced on Saturday that it is resuming a trial for a coronavirus vaccine it is developing with AstraZeneca. The trial was halted last week following an unexplained illness of a patient in the U.K.

AstraZeneca said clinical trials have resumed in the U.K. following confirmation by the Medicines Health Regulatory Authority.

Investors await the Federal Reserve's monetary policy meeting due this week for more direction. Economists expect the bank to leave rates and quantitative easing unchanged.

The greenback dropped to 1.2829 against the pound and 1.1854 against the euro, from its early highs of 1.2771 and 1.1832, respectively. The greenback is seen finding support around 1.31 against the pound and 1.20 against the euro.

The greenback fell to 4-day lows of 106.01 against the yen and 0.6702 against the kiwi, after rising to 106.17 and 0.6657, respectively in early deals. The currency is likely to locate support around 104.00 against the yen and 0.68 against the kiwi.

The U.S. currency eased to 0.7288 against the aussie, from a high of 0.7269 set at 8:45 pm ET. On the downside, 0.75 is possibly seen as its next support level.

Reversing from a high of 1.3194 hit at 8:30 pm ET, the greenback edged down to 1.3157 against the loonie. The next possible support for the greenback is seen around the 1.29 level.

The greenback fell back to 0.9083 against the franc, not far from a session's low of 0.9080 seen earlier in the session. Next near term support for the greenback is likely seen around the 0.88 level.

The kiwi firmed to a 4-day high of 1.7683 against the euro and a 6-day high of 1.0870 against the aussie, off its early lows of 1.7766 and 1.0927, respectively. The kiwi may find resistance around 1.74 against the euro and 1.06 against the aussie.

The kiwi reached as high as 71.08 against the yen, up from a low of 70.64 recorded at 5:00 pm ET. If the kiwi rises further, it may find resistance around the 72.00 level.

Looking ahead, Eurozone industrial production for July will be out in the European session.