Daily Afternoon Report 03.11.2015

The dollar pushed higher against the other major currencies on Tuesday, as it continued to recover from recent losses and investors awaited the release of U.S. factory orders data later in the day.

The dollar was higher against the yen, with USD/JPY up 0.19% at 120.97.

The greenback weakened after the Institute for Supply Management said on Monday that its index of purchasing managers fell to a more than two-year low of 50.1 last month from a reading of 50.2 in September.

The dollar had already lost ground after data last Thursday showed that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

Investors were turning their attention to Friday’s U.S. nonfarm payrolls report for indications on the likelihood of a December rate hike.

The Federal Reserve left rates on hold last week but indicated that it could still raise interest rates for the first time since 2006 at its December meeting.

EUR/USD dropped 0.51% to trade at 1.0959.

Earlier Tuesday, data showed that the number of unemployed people in Spain increased by 82.300 in October, more than the expected 70.300 rise and after an increase of 26.100 the previous month.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD sliding 0.30% to 1.5371 and with USD/CHF climbing 0.53% to 0.9915.

Data earlier showed that the Markit U.K. construction PMI ticked down to 58.8 last month from 59.9 in September, matching economists’ forecasts.

The Australian dollar was higher, with AUD/USD up 0.23% at 0.7164, while NZD/USD declined 0.68% to 0.6700.

In a widely expected move, the Reserve Bank of Australia left its benchmark interest rate unchanged at 2.0% on Tuesday.

Speaking after the decision, RBA Governor Glenn Stevens that “the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.”

Meanwhile, USD/CAD gained 0.45% to trade at 1.3153.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.42% at 97.40.