Investing.com - The dollar was higher against the euro on Wednesday after the release of better-than-expected U.S. economic data, while prospects for further monetary easing by the European Central Bank curbed investor demand for the euro.
EUR/USD hit session lows of 1.3780, and was last down 0.15% to 1.3805, holding above Tuesday’s lows of 1.3748.
The dollar rose after the Commerce Department reported that U.S. durable goods orders rose 2.2% last month, snapping two months of declines and surpassing expectations for a 1% increase.
Core durable goods orders, which exclude transportation items, inched up 0.2%, slightly below forecasts for a 0.3% gain.
The data indicated that economy is gaining momentum in the wake of a weather induced slowdown.
The single currency remained under pressure ECB officials indicated Tuesday that the bank is considering policy options to stave off the risk of deflation in the region.
ECB governing council member Jens Weidmann said a negative deposit rate could be an appropriate way to address the impact of strong gains in the euro. He also said it was not out of the question for the ECB to buy loans or other assets from banks to fight deflation.
EUR/JPY slipped 0.12% to 141.21, not far from Tuesday’s lows of 140.68.
Elsewhere, USD/JPY edged up 0.02% to 102.28 in rangebound trade, while USD/CHF rose 0.17% to 0.8840.
The dollar moved lower against the firmer pound, with GBP/USD climbing 0.29% to 1.6575.
The Australian dollar advanced to four-month highs, with AUD/USD up 0.68% to 0.9225 after weak Chinese manufacturing data earlier in the week fuelled hopes that the government may implement stimulus measures to bolster growth.
Market sentiment was also boosted as tensions over Ukraine eased after the U.S. agreed to hold off on additional sanctions against Russia unless Moscow encroaches further in Ukraine.
NZD/USD rose 0.41% to 0.8608, while USD/CAD was down 0.27% to 1.1133.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.07% to 80.15.