Investing.com - The dollar pushed higher against the euro on Tuesday as trade volumes remained thin with markets in Japan closed for the Golden Week holidays.
EUR/USD slid 0.36% to 1.1107, extending its pullback from the two-month high of 1.1289 set last Thursday.
The dollar remained supported after data on Monday showed that U.S. factory orders rose at the fastest pace in eight months in March, adding to indications that the economic recovery is regaining momentum.
New orders for U.S. factory goods rose by a larger than forecast 2.1% in March after a revised 0.1% decline in February.
The data came after economic reports late last week indicated that the U.S. recovery had turned a corner following a recent bout of weakness.
The dollar has weakened in recent weeks after disappointing economic data prompted investors to delay expectations on the timing of an initial rate hike by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% to 95.84, recovering from a two-month low of 94.47 set last Thursday.
The dollar was steady against the yen, with USD/JPY holding at 120.14, while EUR/JPY was down 0.32% to 133.45.
Elsewhere, the Australian dollar regained ground after initially moving lower in the wake of a rate cut by the Reserve Bank.
AUD/USD was up 0.47% to 0.7873, rebounding from lows of 0.7788 hit after the RBA cut rates to a record low 2.0%.