Investing.com - The euro firmed against a weaker dollar on Tuesday in wake of a soft report on U.S. durable goods, though upbeat consumer confidence data brought the greenback up from earlier lows.
In U.S. trading, EUR/USD was up 0.32% at 1.2741, up from a session low of 1.2685 and off a high of 1.2764.
The pair was likely to find support at 1.2612, last Thursday's low, and resistance at 1.2725, Monday's high.
The dollar slid earlier after data revealed that that U.S. orders for long lasting manufactured goods, anything from toasters to airplanes, fell unexpectedly for a second consecutive month in September.
The U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, decreased by 1.3% last month, disappointing expectations for a gain of 0.5%.
Orders for durable goods in August were revised to a decline of 18.3% from a previously reported drop of 18.4%.
Durable goods are typically bulky or heavy products designed to last at three years and include trains, planes and automobiles.
Core durable goods orders, which are stripped of volatile transportation items, eased down by 0.2% in September, defying forecasts for a 0.5% gain. Core durable goods orders rose by 0.7% in August.
Orders for core capital goods, a key barometer of private-sector business investment, fell by 1.7% last month, worse than expectations for a 0.6% increase and after rising 0.3% in August.
Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in September, disappointing forecasts for a 0.7% gain, after rising 0.1% in the preceding month.
While demand for computers and machinery declined, a sign many firms are holding off on updating equipment, demand for cars and trucks rose, which brought the dollar up from earlier lows as investors concluded that even if consumers aren't spending now, they remain poised to do so in the near future.
The Conference Board reported earlier that its consumer confidence index jumped to 94.5 this month from 89.0 in September, boosted by a more favorable assessment of the current job market and business conditions.
Economists had expected the index to tick down to 87.0 this month.
The report left many investors concluding that while demand for goods and services in the U.S. remains cautious, consumers still remain upbeat over the U.S. economy and will ramp up spending soon.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.05% at 0.7883, and up against the yen, with EUR/JPY up 0.52% at 137.62.
On Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement. Expect the dollar to move on any indication as to when interest rates may rise in the U.S.