Awaiting Key Data Release, This Happens On The US Dollar!

<p>&nbsp;The US dollar traded slightly lower in the European session as the market now focused on the release of key data tonight.</p><p><br /></p><p>At the time of writing, the dollar index was trading lower at around 103.23 against a basket of major currencies.</p><p><br /></p><p>Earlier, the giant currency received support from the minutes of the FOMC meeting which drove it higher.</p><p><br /></p><p>Minutes from the June meeting show that a majority of policymakers expect further tightening in the Federal Reserve's (Fed) tightening policy.</p><p><br /></p><p>It has prompted a strengthening in the 10-year US bond yield to make a rise to a fresh four-month high of 3.97%.</p><p><br /></p><p>Investors are now seen to be more cautious ahead of the release of US private sector ADP employment data, jobless claims and JOLTS in the New York session later.</p><p><br /></p><p><br /></p><p>The data will be the next lead to the key US NFP jobs data due out on Friday.</p><p><br /></p><p>The US dollar's pullback from earlier gains appeared to provide some support for the euro and the pound was trading steady again, but powerless to make further gains.</p><p><br /></p><p>While the Aussie and New Zealand dollars also tried to show recovery, but the gains recorded were limited.</p><p><br /></p><p>Concerns over global growth prospects following aggressive tightening by major central banks appear to be weighing on sentiment towards riskier currencies.</p><p><br /></p><p>As a result, the safe-haven yen is seen to benefit from these concerns to trade stronger against the US dollar and most other major currencies.</p><p><br /></p><p>The health of the US economy will be seen in the data that will be released tonight after a series of hawkish interest rate hikes.</p>