U.S. Dollar Extends Losses as Market Awaits Durable Goods Orders Data

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U.S. Dollar Extends Losses as Market Awaits Durable Goods Orders DataThe U.S. dollar continued with its losing streak as market awaited data this week that is expected to show that durable goods orders in U.S. fell and sales of new home grew by a smaller margin.

The greenback fell 0.2 percent to 101.90 yen after Federal Reserve Chair Janet Yellen said that the central bank will retain the low interest rates for some time. The U.S. currency remained slightly unchanged at $1.3600 per euro. The euro fell 0.2 percent to trade at 138.59 yen.

“We have tended to digest better U.S. data and taken it on the chin,” Alan Ruskin, the New York-based global head of Group of 10 foreign exchange at Deutsche Bank AG, told Bloomberg. “After we heard from Yellen last week, we know what the Fed’s take is in terms of growth and inflation data. They certainly expect the economy to come back, but there’s some uncertainty, and there’s still a long way to go before tightening.”

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The Australian and New Zealand dollars, plus most emerging-nation currencies, surged after data showed that a measure of China’s manufacturing activity rose more than expected. The Chinese manufacturing purchasing managers’ index, which is compiled by HSBC Holdings and Markit Economics, advanced to 50.8 in June, up from 49.4 in May.

The Australian dollar surged 0.3 percent to trade at 94.18 U.S. cents and touched 94.45 cents, its highest level since April 10. The New Zealand kiwi advanced 0.2 percent to 87.11 U.S. cents after earlier touching 87.49 cents, the strongest level since May 6. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com