Forex News: U.S. Dollar Falls As Business Activity Slows

U.S. Dollar Falls As Business Activity Slows

(RTTNews) - The U.S. dollar weakened against its major counterparts in the New York session on Tuesday, after the release of weaker-than-expected flash PMI data for the month of April.

Survey from S&P Global showed that the flash composite output index dropped to 50.9 in April from 52.1 in March.

The services PMI declined to 50.9 from 51.7 in the previous month. The reading was seen at 52.

The manufacturing PMI decreased to 49.9 in April from 51.9 in March. Economists had forecast the index to climb to 52.

Investors also await the release of first-quarter U.S. GDP data as well as the core personal-consumption expenditures (PCE) price index, which is the Fed's preferred measure of inflation, this week for clues about the timing and pace of interest-rate cuts this year.

The greenback touched 0.5948 against the kiwi and 0.6490 against the aussie, setting 8-day lows. The currency may locate support around 0.62 against the kiwi and 0.67 against the aussie.

The greenback dropped to near a 2-week low of 1.0711 against the euro and a 4-day low of 1.2458 against the pound, off its early highs of 1.0638 and 1.2331, respectively. The greenback is seen finding support around 1.10 against the euro and 1.27 against the pound.

The greenback touched 1.3656 against the loonie, its lowest level since April 10. If the currency falls further, it is likely to test support around the 1.33 region.

The greenback declined to a 4-day low of 0.9086 against the franc, from an early 4-day high of 0.9130. The greenback is likely to find support around the 0.89 level.

The greenback eased to 154.56 against the yen, from an early multi-year high of 154.87. On the downside, 144.00 is likely seen as its next support level.

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