The dollar steadied on Tuesday after Monday’s gains on upbeat U.S. housing data and a rise in U.S. bond yields, but traders are waiting for hints on Federal Reserve policy intentions before they test major resistance levels.
The only mover among major currencies in Asia was the New Zealand dollar, which shed a half percentage point after soft economic data pointed to a pause in the country’s rate hikes. The U.S. dollar index stood flat at 81.612 .DXY =USD, after a gain of 0.2 percent on Monday, lacking the momentum to test its 11-month high of 81.716 hit earlier this month.
“The housing data seems to have had an impact on the dollar. Yet the market is still showing no clear direction yet and I see dollar-selling orders above current levels. It seems better to play ranges,” said Bart Wakabayashi, head of currencies at State Street in Tokyo.