The U.S. dollar extended its early rally against its major counterparts in the New York session on Thursday, after a data showed that the U.S. economy expanded in line with the previous estimate in the second quarter and durable goods orders grew more than expected in August, cementing prospects for an additional rate hike in December.
Data from the Commerce Department showed that the pace of U.S. economic growth in the second quarter was unrevised from the previous estimate.
The report said gross domestic product increased at an annual rate of 4.2 percent in the second quarter, unchanged from the estimate released last month. The unrevised growth also matched economist estimates.
Separate data showed that new orders for U.S. manufactured durable goods jumped much more than expected in the month of August.
The Commerce Department said durable goods orders surged up by 4.5 percent in August after falling by a revised 1.2 percent in July.
Economists had expected durable goods orders to climb by 2.0 percent compared to the 1.7 percent slump that had been reported for the previous month.
Excluding the spike in orders for transportation equipment, durable goods orders inched up by just 0.1 percent in August after rising by 0.2 percent in July. Ex-transportation orders had been expected to increase by 0.5 percent.
Meanwhile, the Labor Department released a report showing a modest rebound in initial jobless claims in the week ended September 22nd.
The report said initial jobless claims rose to 214,000, an increase of 12,000 from the previous week’s revised level of 202,000.
Economists had expected jobless claims to rise to 210,000 from the 201,000 originally reported for the previous week.
The currency was well-bid after the Fed raised interest rates by 25 basis points and hinted at another rate hike this year and three more in 2019.
The Fed also indicated that the labor market has continued to strengthen and that economic activity has been rising at a strong rate since the previous meeting.
The dollar has been trading higher against its major rivals in the previous session.
The greenback climbed to a weekly high of 0.6625 against the kiwi, after falling to 0.6680 at 5:00 pm ET. The greenback is seen finding resistance around the 0.65 area.
The greenback appreciated to 0.7213 against the aussie, marking an 8-day high, up by 0.8 percent from a low of 0.7268 touched at 11:30 pm ET. If the greenback rises further, 0.70 is possibly seen as its next resistance level.
The greenback advanced to 1.3082 against the loonie, its strongest since September 11. Next key resistance for the greenback is seen around the 1.32 mark.
The greenback added 0.7 percent to hit a 1-week high of 1.1671 against the euro, from a low of 1.1757 seen at 8:30 pm ET. Continuation of the greenback’s uptrend may see it challenging resistance around the 1.15 level.
Survey data from European Commission showed that Eurozone economic confidence weakened further in September.
The economic sentiment index dropped to 110.9 in September from 111.6 in August. The score was forecast to fall to 111.2.
The U.S. currency strengthened to a new 2-week high of 0.9746 against the franc, following a decline to 0.9646 at 5:00 pm ET. The greenback is likely test resistance around the 0.99 area.
Having dropped to a 3-day low of 112.56 against the yen at 3:30 am ET, the greenback reversed direction and was trading higher at 113.04. The next likely resistance for the greenback is seen around the 115.00 level.
The greenback bounced off to 1.3117 against the pound, reversing from a low of 1.3178 hit at 9:00 pm ET. This was short of few pips from a 2-day peak of 1.3108 touched in the early European session. The greenback is poised to find resistance around the 1.29 region.
In day’s events, the Federal Reserve Chair Jerome Powell speaks at Senator Reed’s Rhode Island Business Leaders Day in Washington DC at 4:30 pm ET.