CANBERA (dpa-AFX) - The U.S. dollar came in mixed against its key counterparts in the European session on Wednesday, after a data showed that the nation's private sector employment grew more than expected in July, as traders await the Fed decision that is expected to deliver a reduction in interest rate.
Data from payroll processor ADP showed that private sector employment in the U.S. increased slightly more than anticipated in the month of July.
ADP said private sector employment climbed by 156,000 jobs in July after rising by an upwardly revised 112,000 jobs in June.
Economists had expected employment to increase by 150,000 jobs compared to the addition of 102,000 jobs originally reported for the previous month.
The ADP report acts an early indicator for monthly jobs report due on Friday.
Employment is expected to climb by 165,000 jobs in July after jumping by a much bigger than expected 224,000 jobs in June, while the unemployment rate is expected to hold at 3.7 percent.
The Fed will announce its decision on interest rates at 2 pm ET, followed by a press conference with Chairman Jerome Powell.
Economists widely anticipate a quarter point cut in interest rate, taking it to 2.00-2.25 percent.
Traders closely garner Powell's speech for more indications about the trajectory of U.S. interest rates in the months ahead.
The currency held steady against its major counterparts in the Asian session, with the exception of the franc.
The greenback depreciated to 0.9893 against the franc, from a high of 0.9913 hit at 1:45 am ET. The greenback is seen finding support around the 0.96 level.
The greenback fell to 1.2190 against the pound from Tuesday's closing value of 1.2148. On the downside, 1.26 is possibly seen as the next support level for the greenback.
Data from the Nationwide Building Society showed that UK house prices increased for the second straight month in July.
House prices grew 0.3 percent month-on-month, faster than the 0.1 percent rise in June and the expected 0.2 percent increase.
The greenback rose back to 108.63 against the yen, after reaching as low as 108.50 at 8:00 pm ET. The next possible resistance for the greenback is seen around the 111.00 level.
Data from the Cabinet Office showed that Japan's consumer confidence weakened to the lowest level in five-and-a-half years in June.
The consumer confidence index for households with two or more persons fell to a seasonally adjusted 37.8 in July from 38.7 in June. Economists had expected a score of 38.5.
After a 6-day fall to 1.1162 against the euro at 2:15 am ET, the greenback reversed direction with the pair trading at 1.1149. The greenback is likely to face resistance around the 1.09 level.
Flash estimates from Eurostat showed that Eurozone consumer price inflation slowed in July, after rising in the previous month.
Headline inflation eased to 1.1 percent from 1.3 percent in June. The slowing was in line with economists' expectations.
The Federal Reserve's interest rate decision is slated for release at 2:00 pm ET. Economists widely expect the central bank to cut rates to 2.00 percent - 2.25 percent.
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