Investing.com -- EUR/USD extended a mild losing streak to its fourth consecutive session, as currency traders await for Wednesday's release of the minutes from the Federal Open Market Committee's July meeting for further indications on the timing of the U.S. Central Bank's first short-term interest rate hike in nearly a decade.
The currency pair traded in a tight range between 1.1060 and 1.1125 before settling at 1.1078, down 0.0033 or 0.30% for the session. Although the euro closed lower against its American counterpart for the fourth consecutive trading day, it is still down by less than 1% during the minor losing streak. Previously, EUR/USD closed higher on six of its prior seven trading sessions as it surged above 1.115 last Wednesday, its highest closing level in more than a month.
The pair likely gained support at 1.0808, the low from July 20 and was met with resistance at 1.1213, the high from August 12.
On Monday, the dollar pared losses from the start of the U.S. morning trading session after the Empire State Manufacturing Index fell to its lowest level in more than six years. In its monthly survey of manufacturers from New York state, the New York Fed said Monday that its index for August plunged to negative 14.92, far below analysts' forecasts of a consensus range between 3.00 to 6.00. New orders weighed on the index, plunging to negative 15.70 for August from minus 3.50 a month earlier.
The dollar rallied shortly thereafter, however, after the National Association of Home Builders said its Housing Market Index for August rose modestly, in line with analysts' expectations. The index ticked up one point to 61 for the month of August, within a consensus range of forecasts for a 59-62 reading. In July, the index surged to 60 – its highest reading in more than a decade.
Elsewhere, the People's Bank of China (PBOC) maintained its push to stabilize the yuan, days after its currency suffered its most tumultuous week in years. During Monday morning's daily fix, the PBOC moved its currency only 0.1% from its midpoint against the dollar, as USD/CNY rose modestly 0.06% to 6.3949. By comparison, the Chinese central bank moved the yuan nearly 2% below the midpoint of the currency pair on two consecutive days last week, as the remnibi fell to its lowest level in four years.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, rose more than 0.25% to an intraday high of 96.96 in U.S. afternoon trading before falling back to 96.85 at the close.