The Dollar was lower against the other major currencies on Tuesday extending its recent losses on reduced expectations for a US rate hike before the end of the year. The dollar was lower against the Yen, with USD/JPY down 0.10% at ¥120.33. Official data released showed that the US trade deficit widened to $48.33 billion in August from $41.81 billion in July, whose figure was revised from a previously estimated deficit of $41.90 billion. Forecasts were for the trade deficit to widen to $47.40 billion in August.
In Europe data showed that German factory orders declined by 1.8% in August below forecasts for a 0.5% gain. Factory orders dropped 2.2% in July, whose figure was revised from a previously estimated 1.4% fall. The EUR/USD gained 0.53% to $1.1247. The Dollar was lower against the Pound and the Swiss franc with the GBP/USD up 0.40% at $1.5206 and the USD/CHF was down 0.51% to Fr0.9705.
The Australian and New Zealand dollars were stronger with the AUD/USD up 0.65% to $0.7129 and the NZD/USD was up 0.24% to $0.6503. The Reserve Bank of Australia left its benchmark interest rate unchanged at 2.00% as expected and added that any changes in monetary policy will be determined by “further information on economic and financial conditions to be received over the period ahead”.
The USD/CAD was little changed at CAD$1.3071 after data showed that Canada’s trade deficit widened to CAD$2.53 billion in August from CAD$0.82 billion in July, whose figure was revised from a previously estimated deficit of CAD$0.59 billion. The US dollar index was down 0.49% at 96.76.
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