2024.01.0516:38:00UTC+00U.S. Dollar Weakens As ISM Services PMI Misses Expectations

The U.S. dollar reversed direction and fell against its major counterparts in the New York session on Friday, as the nation's service sector growth slowed to a crawl in the month of December.

Data from the Institute for Supply Management showed that the services PMI fell to 50.6 in December from 52.7 in November. While a reading above 50 still indicates growth, economists had expected the index to show a much more modest decrease to 52.6.

The bigger than expected drop by the headline index partly reflected a slowdown in the pace of growth in new orders, with the new orders index sliding to 52.8 in December from 55.5 in November.

The greenback declined to 0.6277 against the kiwi, 143.80 against the yen and 0.6747 against the aussie, from an early 3-week high of 0.6181 and more than 3-week highs of 145.97 and 0.6640, respectively.

The greenback dropped to a 1-week low of 1.2771 against the pound and 3-day lows of 0.8554 against the franc and 1.0998 against the euro, down from an early 3-day high of 1.2611, 10-day high of 0.8576 and a fresh 3-week high of 1.0876, respectively.

The greenback moved down to a 3-day low of 1.3287 against the loonie, reversing from an early more than 2-week high of 1.3399.

The currency may possibly face support around 0.645 against the kiwi, 139.00 against the yen, 0.70 against the aussie, 1.31 against the pound, 0.83 against the franc, 1.12 against the euro and 1.30 against the loonie.