The U.S. dollar moved down against its major counterparts in the European session on Monday, as last week’s mixed U.S. employment data soothed jitters about a tapering of the bond buying program soon.
While U.S. nonfarm payrolls rose more than expected in June, the unemployment rate edged up unexpectedly, helping ease worries about an immediate withdrawal of the Fed’s stimulus measures.
Traders are awaiting the minutes from the Fed’s June policy meeting due on Wednesday for more clues about the policy outlook.
The minutes could offer more clarity on the central bank’s discussions on tapering its quantitative easing program.
The June meeting surprised markets by signaling two rate hikes in 2023 and the start of a discussion about the process of paring back bond purchases.
Apart from the Fed’s minutes, this week’s economic docket highlights ISM non-manufacturing PMI due on Tuesday and the initial jobless claims to be published on Thursday.
The U.S. markets will remain closed today on account of the Independence Day holiday.
The greenback slipped to 5-day lows of 1.3860 against the pound and 110.80 against the yen, reversing from its early highs of 1.3817 and 111.19, respectively. The next possible support for the greenback is seen around 1.40 against the pound and 108.00 against the yen.
The greenback touched a 4-day low of 1.1880 against the euro, down from a high of 1.1851 seen at 12 am ET. The greenback may locate support around the 1.20 level.
The greenback reached as low as 0.9202 against the franc, falling from a high of 0.9233 set at 3:25 am ET. The greenback is poised to challenge support around the 0.90 mark.
The greenback hit 0.7537 against the aussie, its lowest level since June 29. Should the greenback falls further, it is likely to test support around the 0.78 region.
Data from the Australian Bureau of Statistics showed that Australia’s building approvals declined more than expected in May.
The number of dwellings approved decreased 7.1 percent on a yearly basis in May, following a 5.7 percent decline in April. Economists had forecast a fall of 5 percent.
The greenback remained lower at 0.7032 against the kiwi, near where it ended deals on Friday. The greenback may seek support around the 0.72 region, if it drops again.
On the other hand, the greenback rebounded from an early 1-week low of 1.2308 against the loonie, with the pair trading at 1.2355. The greenback is seen finding resistance around the 1.25 level.