Forex - Dollar soars in Asia as trades ponder bank meetings

Investing.com - The U.S. dollar rallied against its major rivals in Thursday’s Asian session due to some slack data points and traders mulling the outcome of some pivotal central bank meetings later today.

In Asian trading Thursday, EUR/USD fell 0.15% to 1.3047. The pair was likely to find support at 1.3017, Monday's low, and resistance at 1.3140, Tuesday's high.

EUR/USD may be under lingering pressure caused by German industrial production reported during Wednesday’s European session. German industrial production rose 0.2% in November, according to official data, missing market expectations for a 1.0% increase. German industrial production fell 2.9% on year in November, in line with expectations. Germany is the Eurozone’s largest economy.

The European Central Bank meets later today and with some positive signs emerging in the Eurozone economy, the ECB will probably keep rates at 0.75%. The 17-nation Eurozone is mired in a recession, but the region has stabilized recently, meaning the ECB may not feel compelled to lower rates.

For now, the ECB primary objective may be to stimulate bank lending as a way of jolting economic growth. In inflation moves higher later this year, the ECB could move to lower rates at that time.

GBP/USD slipped 0.11% to 1.6007. Traders widely expect the Bank of England will not announce fresh monetary easing measures. In December, the central bank voted overwhelmingly against extending a USD601 billion bond-buying initiative. With interest rates hovering around a record low of 0.5%, a rate cut is probably off the table as well.

Elsewhere, USD/JPY advanced 0.24% to 88.10 while USD/CHF jumped 0.15% to 0.9268. Flattish oil prices helped USD/CAD gain 0.04% to 0.9881.

Another glum Australian data point weighed on AUD/USD, which fell 0.13% to 1.0501. Australian approvals to build new homes rose less-than-expected last week, official data showed on Thursday.

In a report, Australian Bureau of Statistics said that Australian Building Approvals rose to a seasonally adjusted 2.9%, from -5.1% in the preceding week whose figure was revised up from -7.6%. Analysts had expected Australian Building Approvals to rise to 5.0% last week.

The kiwi was also under pressure following a data point release as NZD/USD fell 0.15% to 0.8386. New Zealand’s trade balance rose less-than-expected last month, data showed on Wednesday.

In a report, Statistics New Zealand said that the trade balance rose to a seasonally adjusted -700M, from -718M in the preceding month. Analysts had expected the trade balance to rise to -620M last month.

Elsewhere, the U.S. Dollar Index climbed 0.18% to 80.78.