The greenback relinquished some of its previous session's gains versus the majors, with Treasury Secretary Geithner jawboning the dollar lower. Geithner responded for calls from China for a global currency but suggesting he was open to the idea. With the G-20 meeting in the UK next week, government officials' verbal intervention will be closely scrutinized as a driver for the currency market.

Economic data released earlier revealed better than expected US reports, including February durable goods orders and new home sales. The core durable goods orders improved by 3.5% in February, beating calls for a decline of 1.5% and reversing the 3.0% decline in January. The headline figure advanced by 3.4%, a steep improvement from January, which posted a decline of 4.5%. Meanwhile, February new home sales increased by 4.7% to 337k units and beating expectations for a decline to 300k units from 309k units a month earlier.

The calendar for Thursday will see weekly jobless claims, Q4 GDP and Q4 PCE. Weekly jobless claims are expected to continue to edge higher, climbing to 650k from 646k a week earlier. Growth in the fourth quarter is forecasted to deteriorate further, contracting by 6.5% and worst than the 6.2% decline previously. Lastly, both core PCE and PCE are seen unchanged from the previous reading, holding steady at 0.8% and -5.0%, respectively.

Euro Rebounds

The euro recouped losses against the dollar, edging past the 1.36-level earlier in the session. Germany's IFO sentiment survey for March was worse than expected with the expectations component improving by less than forecast at 81.6, albeit up from 80.9 from February. The IFO index declined to 82.1 from 82.6 from a month earlier, while the current indicator fell to 82.7 from 84.3.

EURUSD will encounter resistance at 1.3630, followed by 1.3665 and 1.37. Subsequent ceilings are eyed at 1.3740, backed by 1.3780 and 1.38. On the downside, support begins at 1.3580, followed by 1.3550 and 1.35. Additional losses will encounter floors at 1.3460, backed by 1.3430 and 1.34.