The US dollar traded slightly lower in the European session as the market now focused on the release of key data tonight.
At the time of writing, the dollar index was trading lower at around 103.23 against a basket of major currencies.
Earlier, the giant currency received support from the minutes of the FOMC meeting which drove it higher.
Minutes from the June meeting show that a majority of policymakers expect further tightening in the Federal Reserve's (Fed) tightening policy.
It has prompted a strengthening in the 10-year US bond yield to make a rise to a fresh four-month high of 3.97%.
Investors are now seen to be more cautious ahead of the release of US private sector ADP employment data, jobless claims and JOLTS in the New York session later.
The data will be the next lead to the key US NFP jobs data due out on Friday.
The US dollar's pullback from earlier gains appeared to provide some support for the euro and the pound was trading steady again, but powerless to make further gains.
While the Aussie and New Zealand dollars also tried to show recovery, but the gains recorded were limited.
Concerns over global growth prospects following aggressive tightening by major central banks appear to be weighing on sentiment towards riskier currencies.
As a result, the safe-haven yen is seen to benefit from these concerns to trade stronger against the US dollar and most other major currencies.
The health of the US economy will be seen in the data that will be released tonight after a series of hawkish interest rate hikes.
