Forexpros – The euro fell against the U.S. dollar Tuesday as slowing Chinese economic growth and mixed U.S. housing data increased demand for the greenback
EUR/USD traded at 1.3221, down 0.13%, after hitting a high of 1.3253 and a low of 1.3173 during the session.
The pair was likely to find short-term support at 1.3141, Monday’s low and resistance at 1.3264, Monday’s high.
The U.S. dollar strengthened broadly BHP Biliton stated that Chinese steel production is slowing causing concerns about growth in the world’s second largest economy.
In the U.S., governmental data revealed that housing starts dropped in February, but the number of building permits issued rose to the highest level since October 2008.
The Commerce Department stated 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, investors were watching the outcome of talks between Italian Prime Minister Mario Monti and union leaders regarding reforms to the country’s labor market, as Monti attempts to turn around the euro zone’s third largest economy.
The euro was slightly higher against the pound and the yen, withEUR/GBP adding 0.07% to trade at 0.8336 and EUR/JPY rising 0.17% to hit 110.51.
Later in the session, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely monitored for clues on the future direction of monetary policy in the world’s leading economy.
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