U.S. Dollar Advances Amid Solid PMI Data
May 23 2024 - 7:36AM
RTTF2
The U.S. dollar climbed against its major counterparts in the
New York session on Thursday, as the nation's business activity
accelerated sharply in May, its highest level since April 2022.
Flash survey results from S&P Global showed that the
composite output index rose to 54.4 from 51.3 in the previous
month. The expected score was 51.1.
The manufacturing PMI increased to 50.9 from 50.0 in the prior
month. Economists had forecast the index to remain unchanged.
The services PMI advanced to 54.8 in May from 51.3 in April. The
reading was expected to remain unchanged.
Data from the Labor Department showed that first-time claims for
U.S. unemployment benefits fell more than expected in the week
ended May 18.
Initial jobless claims slid to 215,000, a decrease of 8,000 from
the previous week's revised level of 223,000.
Economists had expected jobless claims to edge down to 220,000
from the 222,000 originally reported for the previous week.
The greenback recovered to 0.6618 against the aussie and 0.6101
against the kiwi, off its early lows of 0.6653 and 0.6133,
respectively. The currency is likely to locate resistance around
0.64 against the aussie and 0.58 against the kiwi.
The greenback rebounded to 1.2701 against the pound and 0.9152
against the franc, from its early lows of 1.2746 and 0.9126,
respectively. The greenback may challenge resistance around 1.24
against the pound and 0.93 against the franc.
The greenback climbed to a fresh 3-week high of 157.19 against
the yen and a 2-week high of 1.3704 against the loonie, reversing
from its early lows of 156.50 and 1.3656, respectively. The
greenback is seen finding resistance around 159.5 against the yen
and 1.38 against the loonie.
The greenback rose back to 1.0820 against the euro. This may be
compared to a previous 8-day high of 1.0812. Next key resistance
for the currency is seen around the 1.06 level.
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