Investing.com - The dollar slipped lower against the other major currencies on Tuesday, pulling away from a two-month peak after downbeat U.S. consumer confidence and manufacturing data overshadowed more positive reports released earlier in the day.
USD/JPY slipped 0.13% to 110.97, below Monday’s three-week highs of 111.44.
The Conference Board said its index of consumer confidence fell to 92.6 this month from a reading of 94.7 in April, whose figure was revised from a previously reported 94.2. Analysts had expected the index to increase to 96.0 in May.
The data came after market research group Kingsbury International said its Chicago purchasing managers’ index declined to a three-month low of 49.3 this month from a reading of 50.4 in April. Analysts had expected the index to rise to 50.9 in May.
Earlier Tuesday, the U.S. Commerce Department said that personal spending climbed by 1.0% last month, above expectations for a gain of 0.7%. Personal spending for March rose 0.1%.
Personal income, meanwhile, rose by 0.4%, in line with forecasts and after rising 0.4% a month earlier.
The dollar had strengthened broadly after Federal Reserve Chair Janet Yellen said on Friday that it would be appropriate for the central bank to raise rates “gradually and cautiously” in the coming months if the economy and the labor market continue to pick up as expected.
Meanwhile, the yen remained supported after data overnight showed that Japanese factory output unexpectedly rose in April despite a series of earthquakes in the south of the country.
EUR/USD added 0.16% to 1.1158, off Monday’s 10-week lows of 1.1097.
Eurostat reported earlier that euro zone consumer price inflation fell by 0.1% this month, in line with forecasts, and following a final reading of a 0.2% drop in April.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by 0.8% in May, also in line with expectations and up slightly from 0.7% a month earlier.
The dollar was higher against the pound, with GBP/USD down 0.49% at 1.4572 and was lower against the Swiss franc, with USD/CHF slipping 0.18% to 0.9903.
The Australian and New Zealand dollars moved higher, with AUD/USD up 0.88% at 0.7245 and with NZD/USD rallying 1.03% to 0.6765.
The Australian Bureau of Statistics said on Tuesday that building approvals increased by 3.0% in April, confounding expectations for a 3.0% drop.
A separate report showed that Australia’s current account deficit narrowed to A$20.8 billion in the first quarter from A$22.6 billion in the fourth quarter of 2015.
In New Zealand, data showed that the ANZ business confidence index climbed to 11.3 in May from a reading of 6.2 the previous month.
Elsewhere, USD/CAD edged up 0.14% to 1.3064.
Official data earlier showed that Canada’s gross domestic product fell 0.2% in March, compared to expectations for a 0.1% slip and after a 0.1% fall the previous month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 95.60, pulling back from Monday’s two-month peak of 95.96.