USD Lost Direction Again! New York Session Be Decisive?

<p>&nbsp;The US dollar traded mixed in the European session as the market now focused on some data releases in the New York session.</p><p><br /></p><p>US jobless claims data, existing home sales and the Philadelphia Federal Reserve's manufacturing survey will grace the coming session.</p><p><br /></p><p>At the time of writing, the dollar index, which measures the strength of the greenback, remained stable above the 100 level despite the decline at the start of the previous Asian session.</p><p><br /></p><p>Earlier in the Asian session, the People's Bank of China (PBOC) acted to set the yuan reference rate lower than expected and provided flexibility for cross-border financing.</p><p><br /></p><p>As a result, the yuan, the Aussie dollar and the New Zealand dollar surged higher, with the Aussie also supported by stronger Australian jobs data.</p><p><br /></p><p><br /></p><p>Meanwhile, the euro moved flat with the price remaining hovering around its highest level against the greenback.</p><p><br /></p><p>The pound is seen struggling to recover after a sharp drop following UK inflation data which fell lower than expected in June to 7.9%.</p><p><br /></p><p>This in turn eases expectations for the Bank of England (BOE) to continue to implement more aggressive interest rate hikes.</p><p><br /></p><p>In addition, the yen changed little with the price hovering around 139.50 against the greenback.</p><p><br /></p><p>The Canadian dollar continued to maintain its strengthening momentum at around one-week highs against the US dollar.</p>