Posted September 02, 2010
The US dollar fell against the euro and other major currencies Wednesday. Bits of positive data fueled the move.
During the currency trading session on Wednesday, the euro managed to climb against the US dollar. The US dollar also fell against numerous other currencies. This comes after reports of a surprising uptick in the US manufacturing activity in the previous month. That added a bit of fuel to investors who were looking for pockets of positive news about the US economy.
Early Reports Push Yen and Dollar
Earlier in the trading session, both the yen and the US dollar struggled under pressure when data was released. In the United States, a report on employment was released while a Chinese and Australian economic data review shows that investors can take on riskier investments. Both currencies have been a stronghold for the investors looking for safety. However, with the potential for better economic data, investors took to riskier investments while allowing the yen and dollar fall.
One surprising bit of information was out of the United States. The Institute of Supply Management's index on the US manufacturing industry's activity showed a rise from 55.5 in July to 56.3 in August. However, many experts had predicted that the index would show a decline t 53.2 instead. Many investors believe that this data could help signal that the US economy is not heading into a double dip scenario.
Also important was the ADP released a report indicating that US companies privately held cut some 10,000 jobs in the month of august. The nonfarm payroll reports are not due out until Friday, but this provides a bit of information showing that that report is unlikely to change.
During the trading day on Wednesday, the Australian dollar managed to post significant climbs after economic data out of the country showed the gross domestic product beat expectations. It rose 2.2 percent to 90.88 US cents. This pushed the Australian dollar up 1.2 percent against the US dollar.
By the Numbers
The ICE Dollar Index pushed the US dollar from 83.097 to 82.514. The euro moved from US $1.2679 on Tuesday to US $1.2799. It rose as high as US $1.2855. The UK pound moved from US $1.5352 to US $1.5453. The UK pound was recovering after the currency lost some of the gains after a UK manufacturing report showed a significant fall that was unexpected. The US Dollar moved from Y 83.87 to Y 84.46.