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Forex - Dollar index little changed after tepid U.S. data

Published 03/24/2017, 08:43 AM
© Reuters.  Dollar holds steady vs. rivals with healthcare bill on tap
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Investing.com - The dollar was little changed against other major currencies on Friday, after the release of tepid U.S. durable goods orders data and as investors remained cautious ahead of a highly-anticipated vote on U.S. President Donald Trump’s healthcare bill.

EUR/USD was up 0.14% at 1.0798, off a three-day low of 1.0761 hit earlier in the session.

The U.S. Commerce Department said durable goods orders increased by 1.7% last month, compared to' expectations for a gain of 1.2%.

Core durable goods orders, which exclude volatile transportation items, rose by 0.4% last month, slightly below forecasts for a 0.4% gain.

But sentiment on the dollar remained vulnerable after Trump warned House Republican lawmakers that he will leave Obamacare in place and move on to tax reform if they do not approve new healthcare legislation in a vote on Friday.

The healthcare vote is seen by investors as a test of his ability to implement key campaign promises such as tax reform and infrastructure spending.

Meanwhile, the euro was supported after market research group Markit earlier said its flash euro zone composite purchasing managers’ index, which measures the combined output of both the manufacturing and service sectors, increased to a six-year high of 56.7 in March from 56.0 in February.

Analysts had expected the index to drop to 55.8 this month.

The report came shortly after data showed that German private sector growth hit its strongest level in nearly six years.

Elsewhere, GBP/USD slid 0.32% to 1.2481, off the previous session’s one-month peak of 1.2532.

USD/JPY edged up 0.11% to 111.04, off Thursday’s four-month trough of 110.63, while USD/CHF held steady at 0.9926.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.18% at 0.7612 and with NZD/USD shedding 0.24% to 0.7013.

Earlier Friday, Statistics New Zealand said the country’s trade deficit narrowed to NZ$18 million last month from NZ$257 million in January, whose figure was revised from a previously estimated deficit of NZ$285 million.

Analysts had expected the trade balance to swing into a surplus of NZ$160 million in February.

Meanwhile, USD/CAD edged up 0.13% to trade at 1.3369.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.53, not far from Wednesday’s six-week trough of 99.34.

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