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Dollar mixed vs. rivals ahead of durable goods data

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Investing.com - The dollar was mixed against its major rivals on Monday, as traders looked ahead to the release of U.S. durable goods data later in the day amid ongoing uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases.

During European morning trade, the dollar was lower against the yen, with USD/JPY sliding 0.11% to 98.63.

The dollar pulled away from three-week highs against the yen on Friday after the Commerce Department said U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.

The weak data sparked concerns over the strength of the recovery in the housing sector and fuelled speculation over whether the Fed will start to taper its USD85 billion-a-month asset purchase program next month.

The dollar was little changed against the euro, with EUR/USD dipping 0.02% to 1.3375.

The single currency remained supported after a senior European Central Bank policymaker said Friday he did not see many arguments for a rate cut following a recent series of improved economic data from the region.

The dollar was steady against the pound in subdued trade, with GBP/USD inching up 0.05% to 1.5575. Markets in the U.K. remained closed for a holiday.

The dollar pushed higher against the Swiss franc, with USD/CHF climbing 0.18% to trade at 0.9234.

Elsewhere, the greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD edging down 0.12% to 0.9015, NZD/USD advancing 0.36% to 0.7836 and USD/CAD rising 0.23% to 1.0522.

In New Zealand, data on Monday showed that the trade balance swung into a larger than expected deficit of NZD774 million in July, from a surplus of NZD374 million the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.06% to 81.46.

Investors were looking ahead to U.S. data on durable goods orders later in the day.

Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.

Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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