Forexpros – The U.S. dollar remained broadly higher against its global counterparts on Tuesday, following the release of mixed U.S. housing data as fresh concerns over a possible slowdown in China supported demand for the greenback.
During early U.S. trade, the dollar was up against the euro, with EUR/USD shedding 0.33% to hit 1.3194.
The Commerce Department said U.S. housing starts fell in February, but the number of building permits issued rose to the highest level since October 2008.
U.S. housing starts declined 1.1% last month to a seasonally adjusted 0.70 million from a revised 0.71 million units in January. Economists had forecast housing starts little changed at a 0.70 million-unit rate.
Building permits jumped 5.1% to a seasonally adjusted 0.72 million, above expectations for a modest 0.6% gain to 0.69 million.
In the euro zone, market participants were eyeing the outcome of talks between Italian Prime Minister Mario Monti and union leaders to discuss reforms to the country’s labor market, as he attempts to turn around the euro zone’s third largest economy.
The greenback was higher against the pound, with GBP/USD shedding 0.25% to hit 1.5853.
Earlier Tuesday, the Confederation of British Industry said industrial order expectations declined more-than-expected in March, easing off the previous month’s six-month high.
But sterling remained supported after official data showed that the annual rate of consumer price inflation in the U.K. eased to the lowest since November 2010 in February, dampening expectations for a fresh round of easing measures by the Bank of England.
The greenback was hovering just below an 11-month high against the yen, with USD/JPY advancing 0.43% to hit 83.70 and also pushed higher against the Swiss franc, with USD/CHF rising 0.32% to hit 0.9141.
In Switzerland, official data showed that industrial production jumped in the last three months of 2011, rising 7.9% and blowing past expectations for a 0.4% gain.
Elsewhere, the greenback posted robust gains against its Canadian, Australian and New Zealand cousins, with USD/CAD climbing 0.66% to hit 0.9934, AUD/USD slumping 1.23% to hit 1.0476 and NZD/USD tumbling 1.25% to hit 0.8157.
Sentiment on the commodity linked currencies was hit earlier amid fresh worries over a slowdown in the world’s second largest economy, after global miner BHP Billiton said that Chinese demand for iron ore is slackening, sparking concerns that commodity prices may decline.
Sentiment on the Aussie and the kiwi was further undermined after the minutes of the Reserve Bank of Australia’s March meeting showed that policymakers believe there is “ample scope” to cut interest rates in the event of a sharp slowdown in the economy arising from the debt crisis in the euro zone.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.43% to hit 80.02.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.
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