Investing.com - The dollar remained broadly higher against the other major currencies on Wednesday, after the release of mostly positive U.S. data boosted optimism over the strength of the economy.
USD/JPY rose 0.35% to 106.97, off Tuesday’s 18-month low of 105.55.
The Institute of Supply Management said its non-manufacturing purchasing manager's index improved to a four-month high of 55.7 last month from 54.5 in March. Analysts had expected the index to rise to 54.7.
At the same time, the U.S. Census Bureau said factory orders increased by 1.1%, better than forecasts for a gain of 0.6%. Factory orders fell 1.9% in February, whose figure was revised from a previously reported decline of 1.7%.
Earlier Wednesday, data showed that the U.S. trade deficit narrowed to $40.44 billion in March from $46.96 billion in February, whose figure was revised from a previously estimated deficit of $47.10 billion.
Analysts had expected the trade deficit to narrow to $41.50 billion in March.
In addition, payroll processing firm ADP said non-farm private employment rose by 156,000 last month, missing expectations for an increase of 196,000.
The economy created 194,000 jobs in March, whose figure was downwardly revised from a previously reported increase of 200,000.
EUR/USD edged down 0.13% to 1.1484.
Earlier Wednesday, research group Markit said its euro zone services PMI slipped to 53.1 in April from 53.2 the previous month, confounding expectations for an unchanged reading.
The dollar pushed higher against the pound and the Swiss franc, with GBP/USD down 0.39% at 1.4523 and with USD/CHF advancing 0.39% to 0.9578.
Sterling weakened after Markit said its U.K. construction PMI fell to 52.0 last month from March’s reading of 54.2. That was its slowest pace since June 2013. Economists had expected the index to inch down to 54.0 in March.
The Australian and New Zealand dollars were lower, with AUD/USD down 0.23% at 0.7465 and with NZD/USD sliding 0.39% to 0.6889.
Statistics New Zealand reported on Wednesday that the unemployment rate rose to 5.7% in the first quarter from 5.3% in the three months to December, compared to expectations for an uptick to 5.5%.
The report also showed that the number of employed people rose by 1.2% in the last quarter, beating expectations for a 0.7% gain and following an increase of 0.9% in the third quarter of 2015.
Elsewhere, USD/CAD rallied 1.08% to 1.2785, the highest since April 18, after Statistics Canada said the trade deficit widened to C$3.41 billion in March from C$2.47 billion in February. Analysts had expected the trade deficit to narrow to C$1.40 billion in April.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% at 93.31, off the previous session’s 16-month trough of 91.89.