Investing.com - The dollar was holding close to ten-week highs against the yen on Wednesday following the release of upbeat U.S. economic data, while the euro slipped lower ahead of Thursday’s European Central Bank policy meeting.
USD/JPY hit 103.94, the highest level since January 23 and was last up 0.08% to 103.74.
Payroll processing firm ADP reported that the U.S. private sector added 191,000 jobs last month, only slightly below expectations for jobs growth of 195,000.
February’s figure was revised up to a gain of 178,000 from a previously reported increase of 139,000.
While the report is not viewed as a reliable guide for the government jobs report due on Friday, it does give guidance on private-sector hiring.
Separately, the Commerce Department said U.S. factory orders jumped 1.6% in February, the biggest increase since September, ahead of forecasts for a 1.2% rise.
The safe haven yen remained under pressure amid growing expectations that China will implement economic stimulus measures to shore up slowing growth.
EUR/USD touched session lows of 1.3766 and was last down 0.17% to 1.3767 amid concerns that the ECB may take steps to stave off deflation in the euro zone, after data on Monday showed that the annual rate of inflation slowed to 0.5% in March, the lowest since November 2009.
However some investors expected the ECB to leave monetary policy on hold, after Bundesbank head Jens Weidmann said over the weekend that the euro zone is not in a deflationary cycle, and that the recent slowdown in inflation was due in large part to temporary factors, such as falls in food and energy prices.
The pound was fractionally higher against the dollar, with GBP/USD edging up 0.05% to 1.6633, while USD/CHF was up 0.32% to 0.8862.
Sterling remained supported after data showed that the U.K. construction sector continued to expand at a rapid pace in March, while confidence about the 12-month outlook rose to the highest in more than seven years.
The Australian dollar edged lower, with AUD/USD dipping 0.10% to 0.9238 after data showed that Australian building approvals fell 5% in February, ahead of expectations for a 2.5% drop.
NZD/USD tumbled 0.97% to 0.8554, extending its pullback from the two-and-a-half year peaks of 0.8696 struck on Tuesday amid profit taking following the recent strong gains.
Meanwhile, USD/CAD edged up 0.08% to 1.1033.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 80.37.