By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar index slipped back on Wednesday in Asian trading hours, giving up some recent data-related gains.
The ICE dollar index DXY +0.12% DXY +0.12% , which measures the greenback against a basket of six major currencies, traded at 82.531, just down from 82.540 reached in late North American trading on Tuesday.
The dollar advanced on Tuesday, after stronger U.S. retail sales data dampened expectations for more quantitative easing moves from the U.S. Federal Reserve.
Credit Agricole strategists said the U.S. dollar appears unable to capitalize on a recent run of stronger U.S. data “due to policy obstacles.”
A key barrier for U.S. currency gains is that timing for central bank action is staring to diverge, they believe.
“While we look for the Fed to “stay the course,” expectations that the European Central Bank will print money and buy sovereign bonds should dominate investor thinking keeping the euro supported for now,” they said.
The euro EURUSD -0.30% reached $1.2327, from in late trading on Tuesday.
The WSJ dollar index XX:BUXX +0.21% , which measures the greenback against a slightly larger basket than that of the ICE index, reached 71.68, from 71.67 in late trading.
Against the Japanese currency, the dollar USDJPY +0.24% bought 78.79 yen, from ÂĄ78.74 late the previous day.
The British pound GBPUSD -0.01% reached $1.5671, from $1.5681. Australia’s currency AUDUSD -0.19% weakened on Wednesday, trading at $1.0475, from $1.0489 in late North American trading on Tuesday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
