Investing.com - The dollar pushed lower against a basket of other major currencies on Tuesday, after the release of mixed U.S. economic reports did little to support optimism over the strength of the nation's recovery.
In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index rose to a five-month high of 57.8 last month, above forecasts for a reading of 56.2 and up from 56.5 in March.
The data came after the U.S. Bureau of Economic Analysis reported that the U.S. trade deficit widened to $51.37 billion in March from a deficit of $35.89 billion in February, whose figure was revised from a previously reported deficit of $35.4 billion.
Analysts had expected the U.S. trade deficit to widen to $41.2 billion in March.
In addition, financial firm Markit said its final reading of the U.S. services purchasing managers index slipped to 57.4 in April, a level that was down from both the preliminary April reading of 57.8 as well as the final March reading of 59.2.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.40% to 95.20, after rising to 96.10 earlier in the day.
EUR/USD gained 0.45% to 1.1194, off session lows of 1.1066.
The single currency found support after the European Commission said in its quarterly forecasts that it now expects the euro zone economy to grow to 1.5% in 2015 up from 1.3% three months ago.
The Commission also revised up its forecast for inflation this year to 0.1% from its earlier forecast for a decline of 0.1% and said it expects inflation of 1.5% in 2015 up from 1.3%.
The pound remained higher, with GBP/USD up 0.50% to 1.5196.
Sterling showed little reaction to a report by market research firm Markit and the Chartered Institute of Purchasing & Supply showing that their U.K. construction purchasing managers' index declined to an almost 22-month low of 54.2 last month from a reading of 57.8 in March.
Economists had expected the index to tick down to 57.5 in April.
Elsewhere, the dollar was steady against the yen, with USD/JPY at 120.12 and lower against the Swiss franc, with USD/CHF sliding 0.73% to 0.9269.
The Australian dollar pushed higher, with AUD/USD up 1.27% to 0.7937 after the Reserve Bank of Australia lowered its benchmark interest rate by 0.25% from 2.25% to a record-low 2.00%, in a widely expected move.
Meanwhile, NZD/USD edged up 0.12% to 0.7545 and USD/CAD declined 0.60% to trade at 1.2020.
In Canada, data showed that the trade deficit widened to C$3.02 billion in March from C$2.22 billion in February, whose figure was revised from a previously estimated deficit of C$0.98 billion. Analysts had expected the trade deficit to narrow to C$0.85 billion in March.