Investing.com - The dollar was trading at three-week highs against the other major currencies on Wednesday, after a slew of positive U.S. data added to optimism over the strength of the economy and boosted expectations for a near-term rate hike.
The National Association of Realtors said pending home sales rose 1.3% last month, beating expectations for an increase of 0.6%.
Pending home sales fell 0.8% in June, whose figure was revised down from a previously reported gain of 0.2%.
In addition, U.S. payroll processing firm ADP said nonfarm private employment rose by 177,000 last month, surpassing expectations for an increase of 175,000.
The economy created 194,000 jobs in July, whose figure was revised from a previously reported increase of 179,000.
The data came a day after Fed Vice Chairman Stanley Fischer said the U.S. labor market is almost at full strength and the pace of interest rate increases will be data dependent.
EUR/USD slipped 0.10% to 1.1131, re-approaching Tuesday’s two-week trough of 1.1128.
Earlier Wednesday, Eurostat said euro zone consumer price inflation rose by 0.2% this month, compared to forecasts for an increase of 0.3%, and following a final reading of a 0.2% advance in June.
Core CPI, which excludes food, energy, alcohol and tobacco, increased by 0.8% in August, missing expectations for it remain steady at July’s reading of a 0.9% gain.
GBP/USD gained 0.39% to 1.3132.
USD/JPY rose 0.37% to 103.35, while USD/CHF held steady at 0.9841.
The Australian dollar turned lower, with AUD/USD down 0.16% at 0.7499, while NZD/USD advanced 0.30% to 0.7242.
Data on Wednesday showed that the ANZ business confidence index for New Zealand ticked down to 15.5 in August from 16.0 the previous month.
Elsewhere, USD/CAD gained 0.34% to trade at a fresh three-week high of 1.3142.
Statistics Canada said the country’s gross domestic product rose by 0.6% in June, compared to expectations for an increase of 0.4% and after a 0.6% contraction the previous month.
However, year-on-year, Canada’s economy contracted by 1.6% in the second quarter, exceeding expectations for a 1.5% decline.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 96.17, just off the three-week high of 96.25 hit earlier in the session.