Investing.com - The euro was higher against the dollar on Tuesday following unexpectedly strong German factory data, but gains were capped amid growing expectations for further rate cuts by the European Central Bank.
EUR/USD hit 1.3132 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3115, gaining 0.29%.
The pair was likely to find support at 1.3067, the session low and resistance at 1.3158, last Thursday’s high.
Germany factory orders rose 2.2% in March, official data showed, compared to expectations for a 0.5% decline.
Year-over-year, German factory orders fell 0.4% in March, better than forecasts for a 2.9% decline.
The data eased concerns over the impact on the euro zone debt crisis on the region’s largest economy.
But sentiment on the single currency remained fragile after ECB President Mario Draghi said Monday that the bank would monitor all euro zone economic data in the coming weeks and was ready to act to cut rates further if needed.
The comments came after the ECB cut rates to a record low 0.5% from 0.75% last week.
The euro rose to session highs against the pound, with EUR/GBP climbing 0.49% to 0.8453, but slipped lower against the yen, with EUR/JPY sliding 0.10% to 129.74.
Elsewhere, the single currency rallied against the Australian dollar, with EUR/AUD advancing 1.05% to 1.2885 after the Reserve Bank of Australia cut interest rates to a record-low 2.75% from 3% on Tuesday and warned that the strong Australian dollar is creating a drag on economic growth.
EUR/USD hit 1.3132 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3115, gaining 0.29%.
The pair was likely to find support at 1.3067, the session low and resistance at 1.3158, last Thursday’s high.
Germany factory orders rose 2.2% in March, official data showed, compared to expectations for a 0.5% decline.
Year-over-year, German factory orders fell 0.4% in March, better than forecasts for a 2.9% decline.
The data eased concerns over the impact on the euro zone debt crisis on the region’s largest economy.
But sentiment on the single currency remained fragile after ECB President Mario Draghi said Monday that the bank would monitor all euro zone economic data in the coming weeks and was ready to act to cut rates further if needed.
The comments came after the ECB cut rates to a record low 0.5% from 0.75% last week.
The euro rose to session highs against the pound, with EUR/GBP climbing 0.49% to 0.8453, but slipped lower against the yen, with EUR/JPY sliding 0.10% to 129.74.
Elsewhere, the single currency rallied against the Australian dollar, with EUR/AUD advancing 1.05% to 1.2885 after the Reserve Bank of Australia cut interest rates to a record-low 2.75% from 3% on Tuesday and warned that the strong Australian dollar is creating a drag on economic growth.