Session Recap: USD continues to show strength

FXStreet (Córdoba) - European currencies were the best performers on Tuesday but finished far from the highs with the US dollar recovering ground during the American session. Commodity currencies were the biggest decliners. Despite ending mixed, Greenback continues to show strength in the market, limiting corrections.

Cable was the best among European currencies but GBP/USD failed to end above 1.6400 and finished around 1.6385/88. The euro lost momentum after economic data from the region and pushed EUR/USD to the downside. The pair ended with marginal gains around 1.2850, still unable to make a sustainable recovery and far from 1.2901 (Sept 23 high).

Among commodity currencies, better-than-expected data from China boosted the block during the Asian session but then pulled back sharply. The loonie weakened further after Canadian economic data (retail sales dropped 0.5% in July) and USD/CAD rose back toward September highs above 1.1050 while AUD/USD and NZD/USD reached fresh multi-month lows after dropping sharply from 2-day highs.

Main headlines in the American session

">Stocks end lower in Wall Street

NZD/USD dips further as Fonterra cuts milk payout forecast

USD/CAD climbed to 1-week highs

AUD/USD at lowest levels since March

EUR/USD edging lower to key support on 1.28 handle