Investing.com - The euro was steady against the dollar on Tuesday following the release of sluggish U.S. data, but slid lower against the yen as a surprise rate cut by Australia’s central bank boosted the Japanese currency.
EUR/USD was little changed at 1.1335, while EUR/JPY was down 0.36% to 132.81.
The dollar weakened after data on Monday showed that U.S. consumer spending fell at the fastest rate since September 2009 in December, dropping 0.3% as households saved on cheaper gasoline prices.
Separate reports showed that U.S. construction spending rose less than expected in December, while manufacturing growth slowed.
The yen gained ground after the Reserve Bank of Australia cut interest rates to a record low 2.25% in a bid to spur slowing growth.
USD/JPY fell to a one-week low of 116.88 following the move and was last at 117.14, with AUD/JPY down 2.49% to 89.42.
The Australian dollar tumbled more than 2% against the greenback, with AUD/USD hitting six-year lows of 0.7629.
Sentiment on the single currency remained fragile amid hopes that Greece’s new government would be able to reach a compromise with its international creditors on the terms of its bailout.
Data on Monday showed that manufacturing activity in Greece, France and Italy declined in January, while activity in Germany slowed from the previous month, underlining concerns over the weak recovery.
The report also showed that producers cut prices at the fastest rate in over 18 months, highlighting concerns over the threat of deflation in the region.
In other trade, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.79.