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Forex - Dollar mostly lower despite strong U.S. data

Published 09/19/2013, 10:12 PM
Updated 09/19/2013, 10:13 PM
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Investing.com - The U.S. dollar traded lower against most of its major rivals during Friday’s Asian session despite a strong batch of data points that were released during Thursday’s U.S. session.

In Asian trading Friday, EUR/USD inched up 0.04% to 1.3536 even as traders backed away from riskier assets such as U.S. equities.

GBP/USD rose 0.05% to 1.6041 official data showed that retail sales fell 0.9% in August, confounding expectations for a 0.4% rise, after a 1.1% increase the previous month.

In addition, the Confederation of British Industry said its index of industrial order expectations rose to 9 in September, from a reading of zero in August, beating expectations for an increase to 2.

USD/JPY fell 0.08% to 99.38 on profit-taking after Bank of Japan Board Member Takahide Kiuchi said the central bank may expand its easing programs.

The dollar came under pressure against most of its major rivals during Thursday’s Asian session after the Federal Reserve surprised currency markets by saying it will not alter its USD85 billion-per-month bond-buying efforts. Most traders expected tapering, perhaps to the tune of USD15 billion a month.

USD/CHF inched up 0.01% to 0.9107 while USD/CAD rose 0.11% to 1.0277. In U.S. economic news out Thursday, In U.S. economic news out Thursday, the National Association of Realtors said sales of previously owned homes rose 1.7% to 5.48 million units last month. That is good for the best reading since early 2007.

The Philadelphia Federal Reserve Bank said its Philly Fed manufacturing survey climbed to 22.3 in September, the highest since March 2011, from 9.3 in August. Economists expected a September reading of 10.

Readings above zero indicates expansion in the region's manufacturing. The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware. The new orders index surged to 21.2 from 5.3, also a 2½-year high, while employment hit a 17-month high of 10.3 from 3.5.

The Conference Board said its index of leading economic indicators rose 0.7% last month following a 0.5% increase in July.

The Labor Department said initial claims for jobless benefits rose by 15,000 to 309,000 last week. Economists expected reading of 330,000 claims. The less volatile four-week moving average fell to 314,750, the lowest since October 2007.

AUD/USD gained 0.12% to 0.9452 while NZD/USD nudged up 0.05% to 0.8381. The U.S. Dollar Index inched down 0.03% to 80.46.


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