Investing.com - The dollar inched higher in Asia on Thursday as the US ratcheted up pressure on North Korea for its ballistic missile test this week - calling for a full trade embargo on Pyongyang - and with investors awaiting the Senate on Donald Trump's tax cut plans.
Japan reports provisional industrial production for October with a provisional gain of 1.9% expected on month. Later, Australia reports building approvals for October with a 1.8% fall expected and private sector credit with a 0.4% gain seen on month.
USD/JPY changed hands at 111.97, up 0.04%, while AUD/USD was last quoted at 0.7571 ahead of data with top trading partner China.
China reports official PMI figures for November with the manufacturing PMI seen at 51.4, a tick down from 51.6 in October, and the non-manufacturing PMI also due with the last reading in October at 54.3.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted up 0.02% to 93.22.
Overnight, the dollar traded roughly unchanged against a basket of major currencies as upbeat economic data and signs of progress on tax reform lifted sentiment but a surge in sterling weighed on upside momentum.
Gross domestic product increased at a 3.3% annual rate in the July-September period, the US Commerce Department said in its second estimate of GDP on Wednesday, beating a previous estimate of 3%.
Pending Home Sales rose 3.5% in October following a 0.4% decline in the previous month amid an uptick in housing activity. That beat economist forecast for a 1% rise.
The reports came as outgoing Federal chair Janet Yellen testified on the economic outlook before the Congressional Joint Economic Committee on Wednesday.
Yellen reaffirmed the central bank’s stance on monetary policy of gradual rate hikes amid concerns that the economy would overheat. Yellen's somewhat hawkish comments lifted Treasury yields, supporting an uptick in the dollar.
"We are not seeing undue inflationary pressure in the labor market, so our policy remains accommodative," Yellen said. "But we do think it's important to gradually move our policy rate toward what I'll call a neutral level, which would be consistent with sustainably strong labor market conditions," she said.
Upside in the dollar was capped, however, amid a rally in sterling to a two-month high against the greenback on news reports of a UK-EU agreement on the so-called Brexit divorce bill.
If a settlement on the Brexit divorce bill is agreed, it paves the way for UK-EU discussions on an interim trade deal, easing the risk of “hard Brexit” – the UK exiting the EU without a trade deal.
OPEC and key ally Russia will extend output curbs for nine months, but likely review the deal in June of 2018 depending on market conditions. A formal announcement on the pact will be made on Thursday.