U.S. Dollar Weakens Amid Soft Consumer Confidence Data, Fed Rate Cut Bets

(RTTNews) - The U.S. dollar declined against its major counterparts in the New York session on Tuesday, amid growing expectations for another half-point rate cut in November.

The likelihood of another aggressive rate cut in November increased and currently stands at 58.2%.

Investors focus on Fed Chair Jerome Powell's remarks and personal consumption expenditures (PCE) data due later this week for further policy moves.

The currency was also weighed by a weak consumer confidence report.

Data from the Conference Board showed that the consumer confidence index fell to 98.7 in September from an upwardly revised 105.6 in August. Economists had expected the index to edge down to 103.8 from the 103.3 originally reported for the previous month.

The greenback weakened to near a 4-week low of 1.3464 against the loonie, more than 1-year low of 0.6878 against the aussie and an 8-1/2-month low of 0.6327 against the kiwi, off its early highs of 1.3538, 0.6814 and 0.6259, respectively. Immediate support for the currency is seen around 1.32 against the loonie, 0.70 against the aussie and 0.645 against the kiwi.

The greenback fell to a 5-day low of 0.8450 against the franc and a 2-1/2-year low of 1.3398 against the pound, from its early highs of 0.8490 and 1.3331, respectively. The currency is seen finding support around 0.83 against the franc and 1.35 against the pound.

The greenback retreated to 1.1163 against the euro and 143.43 against the yen, from an early high of 1.1103 and nearly a 3-week high of 144.68, respectively. The currency is likely to challenge support around 1.13 against the euro and 137.00 against the yen.