Forex News: U.S. Dollar Strengthens On Strong Retail Sales Data

U.S. Dollar Strengthens On Strong Retail Sales Data

(RTTNews) - The U.S. dollar firmed against its major counterparts in the New York session on Tuesday, as the nation's retail sales unexpectedly crept higher in the month of August.

Data from the Commerce Department showed that retail sales inched up by 0.1 percent in August after surging by an upwardly revised 1.1 percent in July.

The uptick surprised economists, who had expected retail sales to dip by 0.2 percent compared to the 1.0 percent jump originally reported for the previous month.

Excluding a slight pullback by sales by motor vehicle and parts dealers, retail sales still crept up by 0.1 percent in August after climbing by 0.4 percent in July. Ex-auto sales were expected to rise by 0.2 percent.

Investors await interest rate decision from the Federal Reserve, due on Wednesday.

The Fed is widely expected to lower interest rates, but there remains some debate about the size of the rate cut.

The greenback edged up to 1.1111 against the euro and 1.3152 against the pound, from its early nearly 2-week lows of 1.1146 and 1.3229, respectively. The currency is likely to locate resistance around 1.06 against the euro and 1.27 against the pound.

The greenback climbed to a 5-day high of 141.99 against the yen and a 6-day high of 1.3617 against the loonie, off its early lows of 140.31 and 1.3580, respectively. The currency is seen finding resistance around 147.00 against the yen and 1.38 against the loonie.

The greenback advanced to 0.8477 against the franc, up from an early 6-day low of 0.8429. If the greenback rises further, it is likely to test resistance around the 0.92 region.

The greenback rose to 0.6178 against the kiwi, reversing from an early nearly 2-week low of 0.6211. Immediate resistance for the currency is seen around the 0.60 level.

In contrast, the greenback fell back against the aussie and was trading at 0.6752. This may be compared to an early 2-week low of 0.6768. The currency is poised to challenge support around the 0.69 level.

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