Dollar retreats following recent U.S. data-related climb
Investing.com – The U.S. dollar turned lower against other major currencies on Tuesday, as markets paused after the greenback’s recent climb to nearly two-week highs following last week’s upbeat U.S. employment data.
The greenback was boosted after the U.S. Department of Labor reported on Friday that the economy added in January, beating expectations for a 184,000 gain. The unemployment rate remained unchanged at this month, in line with expectations.
The report also showed that average hourly earnings rose in January, as expected.
The strong wage growth data fueled inflation expectations, and underlined the case for the Federal Reserve to raise interest rates at a faster pace this year.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% at 89.37 by 05:15 a.m. ET (09:15 GMT), off the nearly two-week peak of 89.58 reached overnight.
The euro and the pound were higher, with up 0.26% at 1.2400 and with adding 0.19% to 1.3984.
The yen was steady, with at 109.01, while rose 0.26% to 0.9339.
Elsewhere, the Australian dollar was weaker, with shedding 0.11% to 0.7867, while advanced 0.61% to 0.7307.
Earlier Tuesday, the Reserve Bank of Australia left the benchmark interest rate unchanged at , in a widely expected move.
The decision came shortly after the Australian Bureau of Statistics reported that retail sales fell in December, compared to expectations for a downtick of only 0.2%.
A separate report showed that Australia’s trade balance hit a in December from a surplus of A$0.036 billion the previous month, whose figure was revised from a previously estimated deficit of A$0.63 billion.
Analysts had expected the trade balance to reach a surplus of A$0.25 billion in December.
Meanwhile, was almost unchanged at 1.2531.
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