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Forex - Dollar lower vs. rivals after euro zone, China PMI data

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Forexpros - The U.S. dollar was lower against all of its major counterparts on Tuesday, after better than expected manufacturing data from Germany and China eased concerns over the outlook for global economic growth.

During European morning trade, the greenback was down against the euro, with EUR/USD advancing 0.81% to hit 1.4475.

Preliminary data showed that Germany's manufacturing purchasing managers' index came in at 52.0 for August, unchanged from July but beating forecasts for a decline to 50.8.

The data came after a preliminary reading of the HSBC's China PMI inched up to 49.8 in August, from a final reading of 49.3 the previous month. There had been some speculation that the reading may turn out to be much weaker.

The greenback was also lower against the pound, with GBP/USD rising 0.55% to hit 1.6545.

In addition, the greenback was lower against the yen and the Swiss franc, with USD/JPY slipping 0.21% to hit 76.63 and USD/CHF shedding 0.39% to hit 0.7870.

Earlier in the day, Japan's Finance Minister Yoshihito Noda reiterated his "strong resolve" to protect Japan's largely export driven economy by selling the yen.

Meanwhile, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.40% to hit 0.9864, AUD/USD surging 0.82% to hit 1.0494 and NZD/USD jumping 0.95% to hit 0.8319.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.66% to hit 73.52.

Later Tuesday, the U.S. was to release official data on new home sales.

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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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