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Forex - Dollar mixed as traders mull data, earnings

Published 01/15/2013, 09:37 PM
Updated 01/15/2013, 09:38 PM
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Investing.com - The U.S. dollar was seen mixed against its major counterparts during Wednesday’s Asian session amid reduced risk appetite. Traders also appeared to be pondering some tepid economic data points delivered during Tuesday’s U.S. session while awaiting a deluge of corporate earnings reports still to come this week.

In Asian trading Wednesday, EUR/USD slipped 0.01% to 1.3304. The pair was likely to find support at 1.3037, the low from Jan. 9, and resistance at 1.3404, Monday's high.

Elsewhere, GBP/USD rose 0.04% to 1.6073 while modestly stronger oil prices forced USD/CAD lower by 0.02% to 0.9842.

A trio of data points released in the U.S. during Tuesday’s session were a mixed bag, indicating recovery in the world’s largest economy, albeit at a slower pace than many optimists would like to see.

In U.S. economic news, the Commerce Department reported a 0.5% increase in retail sales for December compared with a 0.4% rise in November. Economists expected a December increase of just 0.2%.

The Labor Department said an index of wholesale prices fell 0.2% last month following a 0.8% decline in November. Excluding volatile food and energy prices, wholesale prices rose 0.1% in December and 2% for all of 2012.

The New York Empire State manufacturing index fell to -8.1 in December from -5.2 in November, well below the consensus estimate of -1. That is the fifth consecutive month the gauge has been in negative territory.

USD/JPY backed off the multi-year highs seen earlier this week as traders once again appear concerned that the yen has weakened too much too rapidly against the greenback. USD/JPY was off 0.46% at 88.39 during Wednesday’s Asian session. The pair was likely to find support at 86.84, the low from Jan. 8, and resistance at 89.64, Monday's high.

Meanwhile, USD/CHF tumbled 0.11% to 0.9311. AUD/USD added 0.09% to rise to 1.0579 while NZD/USD surged 0.2% to 0.8416. The U.S. Dollar Index rose 0.04% to 79.79.


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