U.S. Dollar Climbs After Solid Economic Data

(RTTNews) - The U.S. dollar advanced against its major counterparts in the New York session on Tuesday, as strong economic data supported expectations of slower rate cuts by the Federal Reserve.

The Institute for Supply Management released a report showing its reading on U.S. service sector activity increased by more than expected in the month of December.

The ISM said its services PMI climbed to 54.1 in December from 52.1 in November, with a reading above 50 indicating growth. Economists had expected the index to rise to 53.3.

A separate report released by the Labor Department showed job openings in the U.S. unexpectedly increased in the month of November.

Data showed job openings rose to 8.098 million in November from an upwardly revised 7.839 million in October.

Economists had expected job openings to dip to 7.700 million from the 7.744 million originally reported for the previous month.

Treasury yields climbed, with the yield on the benchmark ten-year note surging to its highest level in almost nine months.

The greenback rose to 1.0354 against the euro and 0.9096 against the franc, off its early lows of 1.0434 and 0.9022, respectively. The currency is poised to challenge resistance around 0.99 against the euro and 0.93 against the franc.

The greenback edged up to 0.6237 against the aussie and 1.4366 against the loonie, from its early lows of 0.6287 and 1.4297, respectively. The currency is seen finding resistance around 0.59 against the aussie and 1.47 against the loonie.

The greenback touched near a 6-month high of 158.42 against the yen. If the currency rises further, it is likely to find resistance around the 164.00 region.

The greenback advanced to 1.2479 against the pound, from an early 8-day low of 1.2575. The currency is likely to challenge resistance around the 1.22 level.

The greenback recovered to 0.5638 against the kiwi, from an early nearly 3-week low of 0.5692. The currency is poised to challenge resistance around the 0.54 level.