U.S. Dollar Falls As Business Activity Slows
April 23 2024 - 8:56AM
RTTF2
The U.S. dollar weakened against its major counterparts in the
New York session on Tuesday, after the release of
weaker-than-expected flash PMI data for the month of April.
Survey from S&P Global showed that the flash composite
output index dropped to 50.9 in April from 52.1 in March.
The services PMI declined to 50.9 from 51.7 in the previous
month. The reading was seen at 52.
The manufacturing PMI decreased to 49.9 in April from 51.9 in
March. Economists had forecast the index to climb to 52.
Investors also await the release of first-quarter U.S. GDP data
as well as the core personal-consumption expenditures (PCE) price
index, which is the Fed's preferred measure of inflation, this week
for clues about the timing and pace of interest-rate cuts this
year.
The greenback touched 0.5948 against the kiwi and 0.6490 against
the aussie, setting 8-day lows. The currency may locate support
around 0.62 against the kiwi and 0.67 against the aussie.
The greenback dropped to near a 2-week low of 1.0711 against the
euro and a 4-day low of 1.2458 against the pound, off its early
highs of 1.0638 and 1.2331, respectively. The greenback is seen
finding support around 1.10 against the euro and 1.27 against the
pound.
The greenback touched 1.3656 against the loonie, its lowest
level since April 10. If the currency falls further, it is likely
to test support around the 1.33 region.
The greenback declined to a 4-day low of 0.9086 against the
franc, from an early 4-day high of 0.9130. The greenback is likely
to find support around the 0.89 level.
The greenback eased to 154.56 against the yen, from an early
multi-year high of 154.87. On the downside, 144.00 is likely seen
as its next support level.
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