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2017.01.0307:18:00UTC+00U.S. Dollar Climbs Ahead Of U.S. Factory Activity Data

The U.S. dollar firmed against its most major counterparts in the European session on Tuesday, as treasury yields advanced, and investors await US manufacturing PMI data due later in the day for indications about the strength of the economy.

The benchmark treasury yield on 2-year note rose 1.23 percent, while that of 10-year equivalent was up by 2.51 percent. Yields move inversely to bond prices.

Markit releases Purchasing Managers' Manufacturing Index for December at 9.45 am ET. In the previous month, the index was at 54.2.

Institute for Supply Management's Manufacturing Index for December is scheduled at 10 am ET. The economists are looking for 53.7, slightly up from 53.2 last month.

The Commerce Department's Construction Spending data for November will be published at 10.00 am ET. The consensus is for 0.5 percent, unchanged from October.

Chinese factory activity data pointed to stabilization in the economy and a gauge of U.K. manufacturing hit a 30-month high in December, indicating a solid boost in factory activities heading into 2017.

This came a day after a report showing strong factory activity growth in Eurozone in December, which was the highest since April 2011.

Oil prices climbed above $54 per barrel, as a landmark deal between OPEC and non-OPEC member countries to reduce global output kicked in on Sunday. The deal earmarks output cut of 2 millions of crude from the market to rein in the global supply cut and support crude prices.

Investors keenly await the FOMC minutes from the December meeting and ADP private sector payrolls data on Wednesday, followed by all-important jobs data on Friday for more clues about the Fed monetary policy outlook.

The greenback showed mixed performance in the Asian session. While the currency held steady against the franc and the euro, it rose against the yen. Against the pound, it fell.

The greenback appreciated to 118.35 against the yen, its strongest since December 16. The greenback-yen pair is likely to find resistance around the 120.00 level.

Reversing from an early low of 1.0211 against the Swiss franc, the greenback climbed to a 6-day high of 1.0303. The greenback is seen finding resistance around the 1.05 region.

The greenback strengthened to a 6-day high of 1.0382 against the euro, after having fallen to 1.0490 at 11:45 pm ET. Further uptrend may take the greenback to a resistance around the 0.99 mark.

The greenback bounced off to 1.3450 against the loonie, from a low of 1.3404 hit at 1:45 am ET. On the upside, the greenback may locate resistance around the 1.36 area.

The greenback hit a 5-day high of 0.6905 against the kiwi, off its early 4-day low of 0.6974. Continuation of the greenback's uptrend may see it challenging resistance near the 0.675 mark.

The greenback, having fallen to a 4-day low of 0.7236 against the aussie at 12:00 am ET, reversed direction and rose to 0.7198. On the upside, the greenback may find resistance around the 0.70 mark.

On the flip side, the greenback eased from an early 4-day high of 1.2247 against the pound with the pair trading at 1.2284. The pair was valued at 1.2275 when it finished Monday's trading.

Looking ahead, at 8:00 am ET, German flash CPI for December is set for release.

In the New York session, Markit's U.S. final manufacturing PMI and ISM manufacturing index for December and construction spending for November will be released.

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