USD Hobbles Ahead of Key Data Tonight!

<p>&nbsp;The US dollar struggled to find traction in the European session as investors focused on the release of key economic data in the upcoming New York session.</p><p><br /></p><p>Against most major currencies, the dollar index, which measures the strength of the greenback, is trading higher at around 103.60.</p><p><br /></p><p>Earlier, the currency king was pushed lower by weaker-than-expected job opening data (JOLTS) and US consumer confidence.</p><p><br /></p><p>Next, in the New York session, private sector ADP employment data and US gross domestic product (GDP) will be published which can be a driving force for the USD.</p><p><br /></p><p>In the European session, Spain saw consumer prices rise 2.5% year-on-year in August from 2.3% in July, in line with the 2.6% expected by analysts.</p><p><br /></p><p>Markets are now looking to German inflation data to support an expected 25 basis point interest rate hike by the European Central Bank (ECB) at its September meeting.</p><p><br /></p><p><br /></p><p>The euro traded little changed at around 1.0860 against the greenback, while the pound hovered at 1.2630 against the US dollar.</p><p><br /></p><p>Meanwhile, the yen weakened again with prices hovering at a nine-month low.</p><p><br /></p><p>Bank of Japan board member Naoki Tamura continued to reiterate that the central bank will closely monitor the impact on the economy due to a weak yen when conducting policy.</p><p><br /></p><p>Meanwhile, Australian inflation slowed to a 17-month low in July, strengthening the case for the Reserve Bank of Australia to keep interest rates unchanged at its next meeting.</p><p><br /></p><p>The Aussie dollar traded slightly lower following the release of the data, followed by the New Zealand dollar trading also weaker.</p>