The US dollar continues to struggle to recover from the lows of the European session as the market's focus now turns to the release of US gross domestic product (GDP) data.
Against a basket of major currencies, the dollar index, which measures the strength of the greenback, traded weak at an 8-month low of 101.70.
The US economy is expected to maintain a strong growth rate in the fourth quarter although expansion is seen to slow as the impact of high interest rates dampens demand and spending.
Markets are projecting annual rate growth of 2.6% in the final quarter of 2022, down from 3.2% in the third quarter.
While the strong expansion in the second half is predicted to erase the 1.1% contraction recorded in the first six months of last year.
GDP data in the New York session will determine the next move for the currency king.
Moving on to major currency trading, the euro and pound remained trading higher despite the gains made in the European session being reduced slightly.
The Aussie dollar continued to extend its strengthening at a 5-month high against the greenback, amid expectations of an interest rate hike by Australia's central bank after surprise inflation data in the fourth quarter.
Additionally, the Canadian dollar remained steady after the Bank of Canada (BOC) raised interest rates to 4.50% and signaled a temporary halt to its tightening.
