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Dollar mixed on hit-or-miss U.S. data

Published 09/29/2014, 03:23 PM
Updated 09/29/2014, 03:24 PM
Dollar mixed on lackluster U.S. data
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Investing.com - The dollar traded mixed against most major currencies on Monday as investors digested a mixed bag of U.S. data.

In U.S. trading on Monday, EUR/USD was up 0.06% at 1.2692.

Expectations for U.S. monetary policy to grow less accommodative at a time when others may move to loosen have firmed the dollar in recent sessions, though by Monday, mixed U.S. data gave investors room to sell the greenback for profits.

The National Association of Realtors reported earlier that its pending home sales index fell 1.0% to 104.7 in August from 105.8 in July. Economists had expected the index to tick down 0.1% last month.

Separately, the Commerce Department said that U.S. personal spending rose 0.5% in August, beating expectations for an increase of 0.4%, after a 0.1% dip in July.

The report also showed that personal income, reflecting income from wages, investment, and government aid, rose 0.3%, up from 0.2% in July, broadly in line with forecasts.

On Friday, the dollar advanced after the Commerce Department said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast.

The euro, meanwhile, saw demand from bottom fishers.

Last week, European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.

Draghi had vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.

Elsewhere in Europe on Monday, Germany's consumer price index remained unchanged this month, according to official preliminary data.

In a report, Federal Statistical Office Germany said that German CPI remained unchanged at 0.0% in September from 0.0% in the preceding month.

Analysts had expected German CPI to fall -0.1%.

Elsewhere, gold prices remained elevated due to safe-haven demand after a wave of protests in Hong Kong spooked investors worldwide, which pressured the dollar lower slightly as the two assets tend to trade inversely from one another.

Pro-democracy protestors in Hong Kong are angry at China's move to vet all candidates running in the city's elections for chief executive in 2017.

The dollar was up against the yen, with USD/JPY up 0.17% at 109.46, and down against the Swiss franc, with USD/CHF down 0.04% at 0.9510.

The greenback was largely unchanged against the pound, with GBP/USD up 0.01% at 1.6247.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.07% at 1.1149, AUD/USD down 0.41% at 0.8726 and NZD/USD down 1.18% at 0.7772.

The kiwi continued to slide amid growing speculation that authorities feel the currency is too strong.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% at 85.72.

On Tuesday, the U.S. is to publish data on business activity in the Chicago region and a report on consumer confidence.

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