Investing.com - The dollar rose against the other major currencies on Thursday, as mostly positive U.S. data released on Wednesday boosted optimism over the strength of the economy and as investors began to focus on Friday’s key employment report.
USD/JPY rose 0.29% to 107.33.
Market participants were looking to Friday’s U.S. nonfarm payrolls data after payroll processing firm ADP said on Wednesday that non-farm private employment rose by 156,000 last month, missing expectations for an increase of 196,000.
The weak data was offset however by data showing that the U.S. trade deficit narrowed to $40.44 billion in March from $46.96 billion in February.
In addition, the Institute of Supply Management said its non-manufacturing purchasing manager's index improved to a four-month high of 55.7 last month from 54.5 in March.
EUR/USD slid 0.37% to 1.1443.
The dollar slipped lower against the pound, with GBP/USD up 0.10% at 1.4510 and was higher against the Swiss franc, with USD/CHF gaining 0.43% to 0.9617.
Research group Markit reported on Thursday that its U.K. services purchasing managers’ index fell to 52.3 in April from 53.7 the previous month.
It was the lowest level since February 2013 and was below economists’ expectations for a reading of 53.5.
The report came after similar surveys of the manufacturing and construction sectors earlier in the week pointed to slowing growth at the start of the second quarter.
The Australian dollar was stronger, with AUD/USD advancing 0.36% at 0.7483, while NZD/USD held steady at 0.6886.
Earlier Thursday, the Australian Bureau of Statistics said retail sales rose by 0.4% in March, beating expectations for a 0.3% gain, after an uptick of 0.1% in February.
Data also showed that Australia’s trade deficit narrowed to A$2.163 billion in March from A$3.044 billion in February. Analysts had expected the trade deficit to narrow to A$2.900 billion un March.
In other news, Australia Treasurer Scott Morrison said in a statement on Thursday that Philip Lowe will be replacing Glenn Stevens as governor of the Reserve Bank of Australia for a seven-year term on September 18.
Lowe had been serving as RBA deputy governor since early 2012.
Elsewhere, USD/CAD declined 0.32% to 1.2832.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% at 93.51, the highest since April 29.