The U.S. dollar continued to be weaker against the other major currencies in the Asian session on Thursday, as weak U.S. economic data arose uncertainty over the timing of the Federal Reserve's interest rate hike.

The Federal Reserve's report on Wednesday showed U.S. industrial production to have dropped more than expected in March. The Fed said industrial production fell 0.6 percent in March after inching up 0.1 percent in February. Economists expected production to drop by 0.3 percent.

Meanwhile, manufacturing activity in New York unexpectedly contracted in April, due partly to continued decline in new orders, with the index turning negative for the first time since last December.The New York Fed's general business conditions index dropped to a negative 1.2 in April from a positive 6.9 in March, with a negative reading indicating a contraction in regional manufacturing activity.

The index turned negative for the first time since last December, surprising economists, who had expected the index to inch up to 7.0.

The market now focus on U.S. housing data later in the day, for further clues.

Wednesday, the U.S. dollar fell against its most major rivals. The U.S. dollar fell 0.34 percent against the pound, 0.20 percent against the yen and 0.81 percent against the Swiss franc.

In the Asian trading today, the U.S. dollar fell to 1.2249 against the Canadian dollar for the first time since January 21, from yesterday's closing value of 1.2288. If the greenback extends its downtrend, it is likely to find support around the 1.17 area.

Against the euro and the pound, the greenback dropped to 1-week low of 1.0746 and 1.4879 from yesterday's closing quotes of 1.0682 and 1.4837, respectively. On the downside, 1.10 against the euro and 1.52 against the pound are seen as the next support level for the greenback.

The greenback slipped to an 8-day low of 0.9605 against the Swiss franc, from yesterday's closing value of 0.9640. The greenback may test support near the 0.94 region.

Against the Australia and the New Zealand dollars, the greenback slid to nearly a 3-week low of 0.7781 and a 3-week low of 0.7637 from yesterday's closing quotes of 0.7674 and 0.7584, respectively. The greenback is likely to find support near 0.80 against the aussie and 0.77 against the kiwi.

The greenback edged down to 118.78 against the yen. At yesterday's close, the greenback was trading at 119.12 against the yen. The next possible downside target for the greenback is seen at 116.98 level.

Looking ahead, Swiss producer and import prices for March is due to be released at 3:15 am ET.

In the New York session, U.S. building permits and housing starts - both for March, U.S. weekly jobless claims for the week ended April 11 and Reserve Bank of Philadelphia's manufacturing index for April are slated for release.

At 1:00 am ET, Federal Reserve Bank of Atlanta President Dennis Lockhart will deliver a speech about the US economic outlook and monetary policy at the Palm Beach County Convention Center.

After 10 minutes, Federal Reserve Bank of Cleveland President Loretta Mester will speak on the economy before the Forecasters Club of New York.

Subsequently, Federal Reserve Bank of Boston President Eric Rosengren participates in "The U.S. Economic Outlook and Implications for Monetary Policy" event hosted by Chatham House in London at 1:30 pm ET.

At 3:00 pm ET, Federal Reserve Governor Stanley Fischer will participate in a panel discussion titled "The Elusive Pursuit of Inflation" at the International Monetary Fund Spring Meetings in Washington DC at 3:00 pm ET.

AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more AUD vs US Dollar Charts.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more AUD vs US Dollar Charts.