Investing.com - The dollar edged lower against a basket of other
major currencies on Wednesday, but still remained within close
distance of a 13-month high as markets eyed the release of upcoming
U.S. economic reports on Thursday and Friday.
In a report, the U.S. Census Bureau said factory orders rose
10.5% in July, slightly below expectations for an increase of 11%,
after a revised 1.5% rise in June.
The greenback remained supported after strong U.S. factory data
on Tuesday added to the view that the economic recovery is gaining
Investors were looking ahead to the latest U.S. employment
report, due for release on Friday, for further indications on the
strength of the recovery in the labor market, a key factor in
deciding the future path of monetary policy.
EUR/USD was steady, near 1-year lows at 1.3142 amid mounting
expectations that the European Central Bank will announce
quantitative easing measures as a way to shore up growth after the
annual rate of euro area inflation slowed to a five year low last
Data earlier Wednesday showed that activity in the German and
French service sectors slowed in August, while Italy's service
sector contracted, adding to pressure on the bank to act.
A separate report showed that euro zone retail sales fell 0.4%
in July, in line with forecasts.
Elsewhere, GBP/USD was little changed, near five-month lows at
1.6458 despite data showing that the U.K. service sector expanded
at the fastest rate since November last month.
The dollar pulled away from seven month highs against the yen,
with USD/JPY slipping 0.15% to 104.93, while
USD/CHF remained close to 10-month highs at 0.9188.
AUD/USD climbed 0.74% to 0.9343 after data showed that
Australia's grew 0.5% in the second quarter, exceeding expectations
for 0.4% growth. In the first quarter, Australia's GDP expanded by
On a year-on-year basis, Australia's economy grew 3.1% in the
three months to April, compared to expectations for 3.0%
In addition, Reserve Bank of Australia Governor Glenn Stevens
signaled earlier at a conference that interest rates are likely to
remain unchanged for an extended period of time.
Elsewhere, the New Zealand dollar hovered near six-month lows,
with NZD/USD at 0.8322. USD/CAD fell 0.35% to trade at
1.0990 after the Bank of Canada left its benchmark interest rate
unchanged at 1% and said it was neutral about its next policy rate
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, dipped
0.08% to 82.93, still close to a 13-month high of 83.07 hit earlier
in the session.
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new
for Android and iOS!