Investing.com - The dollar held steady against against the other major currencies on Thursday, as investors awaited upcoming U.S. data for further indications on the strength of the economy.
USD/JPY was little changed at 120.35.
The dollar remained supported following strong overnight gains on the back of a rally in Wall Street.
Japan’s Nikkei ended higher on Thursday as overnight gains on Wall Street and a market holiday in China supported risk appetite.
Investors were looking ahead to U.S. reports on trade and unemployment claims, due later in the day, as well as to Friday's highly-anticipated jobs report for further indications on the strength of the economy and signs of a potential rate hike by the Federal Reserve this month.
The dollar was also steady against the euro, with EUR/USD at 1.1225.
The worsening outlook for global growth had boosted demand for the low yielding euro and yen in recent sessions.
Investors often use low-yielding currencies to fund positions in higher-yielding currencies and equities, known as carry trades.
Investors were eyeing the European Central Bank’s policy meeting later Thursday, with the bank expected to cut its inflation forecast due to ongoing falls in oil prices and slowing growth in China.
The bank was expected to keep interest rates unchanged.
The dollar was higher against the pound, with GBP/USD down 0.12% at three-month lows of 1.5280 and was steady against the Swiss franc, with USD/CHF at 0.9697.
Data earlier showed that the Markit services purchasing managers' index fell to 55.6 in August from 57.4 in July. It was the weakest reading since May 2013 and was well below economists’ forecasts of 57.6.
The Australian dollar was lower, with AUD/USD sliding 0.35% to 0.7013, while NZD/USD held steady at 0.6352.
The Aussie came under pressure after official data on Thursday showed that Australia's retail sales fell 0.1% in July, compared to expectations for a 0.4% gain.
Meanwhile, USD/CAD was little changed at 1.3264.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.91.