The dollar fell following disappointing U.S. economic data but pared its losses as U.S. equities dropped late in the U.S. trading session.
Poor performing economic data and an early morning rally in U.S. stocks helped drive up the EUR/USD. Weaker than expected U.S. ISM-Non Manufacturing PMI hurt the dollar and continued the bullish correction in the EUR/USD pair. The PMI came in at 53.8 on market expectations of 55.1.
The pair rallied to its highest level since May when the price reached 1.2661. This coincides with a 23.6% Fibonacci retracement level for the long term bearish trend of the pair. However, following a downturn in U.S. equities, the EUR/USD finished trading near the 1.2620 level.
Crude oil also turned lower on the drop in equities. The price of spot crude oil traded as high as $73.83 before finishing the day up at $72.15.
The Aussie dollar was consistently higher against the dollar and finished at 0.8515 following the decision by the Royal Bank of Australia to hold interest rates steady at 4.50% while leaving the door open for further rate hikes in the future.