Dollar Up as Investors Digest Surprise Fall in U.S. Manufacturing Data By

You are currently viewing Dollar Up as Investors Digest Surprise Fall in U.S. Manufacturing Data By

© Reuters.

By Gina Lee – The dollar was up on Tuesday morning in Asia as a surprise slowdown in U.S. manufacturing growth trimmed Investor bets on a booming U.S. economy giving the U.S. currency a boost.

The that tracks the greenback against a basket of other currencies was up 0.22% to 91.125 by 13:08 AM ET (5:08 AM GMT).

The pair was up 0.21% to 109.28.

The pair was down 0.21% to 0.7744 and the pair was down 0.33% to 0.7174.

The pair was steady at 6.4735 while the pair was down 0.27% to 1.3872.

Japanese and Chinese markets remained closed for a holiday.

The U.S.’ , released on Monday, was a lower-than-expected 60.7 for April. Shortages of basic materials and transport snarls contributed to the drop, which toppled the dollar from a three-week high against the yen and a two-week high on the euro.

The euro rose 0.3%, as investors digested economic data from the region. The was 66.2 for April, while the Eurozone’s was 62.9.

Investors are now looking to further data to be released later in the week including the and the April U.S. employment report which includes .

Some investors suggested that strong figures might boost the dollar by bringing forward expectations for higher interest rates, while others argued that a strong U.S. economy would weigh on the greenback as imports gain and the trade deficit grows.

“The ISM manufacturing report did not live up to expectations but payrolls should be at least as strong as consensus expectations… the U.S. Federal Reserve’s dovish influential core won’t have any of it, but expectations for solid U.S. data this week and likely more hawkish regional Fedspeak leave the dollar index positioned for more two-way price action,” Westpac analysts said in a note.

Benchmark ten-year U.S. Treasury yields fell 2.5 basis points overnight as the data disappointed, and as New York Fed President insisted that the economic recovery so far is “not nearly enough” to tighten monetary policy.

Investors also await policy decisions from and the on Thursday, while the Reserve Bank of Australia (RBA) kept its interest rate steady at 0.10% when it handed down its earlier in the day. Investors are also looking for clues on whether RBA will upgrade economic forecasts that are due on Friday. Meanwhile, the Bank of England could announce a slowdown of its bond purchases when it hands down its policy decision on Thursday.

On the cryptocurrency front, ether extended its record run as it climbed to a new record of $3,457.64 before pulling back slightly.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply