The greenback continued to trade lower after being weighed down by weaker -than -expected ADP private sector U.S. employment data readings, as the market awaits the release of the NFP report on Friday.
The private sector only added 374,000 new jobs in August, much lower than the expected increase of 613,000 but up slightly from the revised July figure of 326,000.
While the ISM manufacturing PMI reading showed a higher-than-expected reading at 59.9, but the employment sub-component dropped to 59 from 52.9.
Both figures give a bleak sign of the NFP employment report to be published tomorrow. This caused the US dollar to trade lower, with the dollar index trading at 92.47 against most major currencies.
The weakness of the US dollar has helped the euro rise to a one -month high, as well as supported by final reading data showing strong growth in the European manufacturing sector, coupled with inflationary pressures from the supply chain.
Meanwhile, the pound also rose higher with the price target returning closer to the 1.38000 level against the US dollar.
On the other hand, the Aussie and New Zealand dollars also took advantage of the greenback's weakness by rising higher. The Aussie dollar performed best with support from surprising economic growth readings in the second quarter.
The kiwi dollar traded strong at 0.7000 as investors now expect an interest rate hike by New Zealand's central bank next month.
