The dollar surged against the majors in early Tuesday trading, rallying to 1.4789 against the euro and 1.6287 versus the British pound. The catalyst for the greenback's advance was earlier weaker-than-expected US economic data, prompting heightened risk aversion and a shift from riskier assets. Spot gold and crude oil both traded lower, easing to $1,036 per ounce and dipping below the $80 per barrel level to $79. The major US equity bourses were largely flat on the session, with the Dow Jones hovering just above the 9,900-mark.
There were several key economic releases earlier in the session, including August Case-Shiller home prices, the October Conference Board's consumer confidence survey and the October Richmond Fed manufacturing index. The Conference Board's consumer confidence survey for October sharply missed consensus estimates for an improvement to 54.3, instead tumbling to 47.7 from 53.1 in September. The disappointing confidence indicator sent the dollar sharply higher as traders dumped riskier assets for the safe-haven play.
The calendar for Wednesday consists of September durable goods orders and new home sales.
The euro continued its slide against the dollar after failing to hold onto recent gains above the psychologically key 1.50-level. Losses accelerated yesterday and extended with the disappointing US consumer confidence survey, sending the pair to 2-week low below the 1.48-figure to 1.4775.
EURUSD will encounter support at 1.4740, followed by 1.47 and 1.4650. Subsequent floors are eyed at 1.4620, backed by 1.46 and 1.4570. On the upside, resistance will emerge at 1.48, followed by 1.4830 and 1.4865. Additional gains will target ceilings at 1.49, backed by 1.4930 and 1.4965.