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Forex - Dollar mostly higher ahead of China PMI

Published 04/22/2013, 09:19 PM
Updated 04/22/2013, 09:20 PM
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Investing.com - The U.S. dollar is trading higher against most of its major rivals during Tuesday’s Asian ahead of the release of HSBC’s flash reading of China’s April purchasing managers index.

In Asian trading Tuesday, EUR/USD fell 0.10% to 1.3055. Riskier currencies languished a bit after the U.S. revealed some concerning housing data Monday.

In U.S. economic news, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis.

Later Tuesday, the U.S. will unveil official data on new home sales as well as preliminary data on manufacturing activity.

GBP/USD inched down 0.02% to 1.5289 after the U.K. said Monday a currency between Scotland and the rest of the U.K. is unlikely to work. The U.K.’s Treasury cited the struggles of the euro zone.

"The recent experience of the euro area has shown that it is extremely challenging to sustain a successful formal currency union without close fiscal integration and common arrangements for the resolution of banking sector difficulties," said the U.K. Treasury in a report.

USD/JPY inched up 0.02% to 99.27 as the pair continues to struggle to crack through the psychologically important 100 level.

USD/CHF rose 0.08% to 0.9352 while USD/CAD nudged up 0.03% 1.0263 despite a modest uptick in oil prices.

In what could be a sign that traders are expecting some disappointment out of the China PMI report, AUD/USD dropped 0.23% to 1.0251. China is Australia’s largest trading partner.

NZD/USD fell 0.14% to 0.8413 while the U.S. Dollar Index rose modestly by 0.04% to 82.81.


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