Dollar mixed after weak U.S. data as Spain budget eyed

Published 09/27/2012, 09:36 AM
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Investing.com - The U.S. dollar was mixed against the other major currencies on Thursday, following a string of broadly weaker-than-expected economic data from the U.S. as investors eyed Spain’s budget report.

During early U.S. trade, the dollar was almost unchanged against the euro, with EUR/USD dipping 0.02% to 1.2872.

Markets were awaiting a press conference to announce the details of Spain’s draft budget statement for 2013, amid ongoing speculation over whether Madrid will seek a full-scale sovereign bailout.

In the U.S, official data showed that the economy expanded 1.3% in the second quarter, down from a preliminary estimate of 1.7%. Economists had expected the rate of growth to remain unchanged.

Meanwhile, official data showed that U.S. durable goods orders fell 13.2% in August, the steepest decline since January 2009, compared to expectations for a 5.0% decline.

Another report showed that the number of people who filed for unemployment assistance in the U.S. last week fell by 26,000 to 359,000, compared to expectations for a decrease to 378,000.

The greenback was lower against the pound, with GBP/USD up 0.35% to 1.6221.

In the U.K., earlier official data showed that the economy contracted by 0.4% in the three months to June, up from the preliminary estimate of a 0.5% decline.

The annualized rate of decline remained unrevised 0.5%, in line with expectations.

Elsewhere, the greenback was fractionally lower against the yen and the Swiss franc, with USD/JPY inching down 0.09% to 77.67 and USD/CHF inching down 0.05% to 0.9387.

The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.18% to trade at 0.9837, AUD/USD rising 0.50% to 1.0422 and NZD/USD up 0.56% to 0.8285.

The growth linked dollars were boosted following reports that China's central bank injected a record USD57.9 billion into the country's banking system this week, after a sharp rise in demand for cash from banks.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.09% to 79.84.

Later in the day, the U.S. was to publish industry data on pending home sales.


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