U.S. Dollar Falls As ISM Services PMI Disappoints

The U.S. dollar dropped against its major counterparts in the New York session on Wednesday, after a data showed that the nation's service sector growth slowed more than anticipated in the month of November.

Data from the Institute for Supply Management showed that the services PMI fell to 52.1 in November from 56.0 in October. While a reading above 50 still indicates growth, economists had expected the index to show a much more modest decrease to 55.5.

Data from payroll processor ADP showed that private sector employment in the U.S. increased slightly less than expected in the month of November.

ADP said private sector employment climbed by 146,000 jobs in November after jumping by a downwardly revised 184,000 jobs in October.

Economists had expected private sector employment to grow by 165,000 jobs compared to the surge of 233,000 jobs originally reported for the previous month.

The greenback dropped to 2-day lows of 1.0543 against the euro and 1.2721 against the pound, off its early 2-day highs of 1.0471 and 1.2629, respectively. The next possible support for the currency is seen around 1.08 against the euro and 1.28 against the pound.

The greenback touched a 2-day low of 0.8826 against the franc. If the currency falls further, it is likely to test support around the 0.87 region.

The greenback eased to 149.98 against the yen, from an early 5-day high of 151.22. The currency is seen finding support around the 144.00 level.

The greenback retreated to 0.6440 against the aussie and 0.5868 against the kiwi, from an early 4-month high of 0.6399 and a 1-week high of 0.5829, respectively. The currency is likely to locate support around 0.66 against the aussie and 0.60 against the kiwi.

The greenback held steady against the loonie, after climbing to a 2-day high of 1.4083 in the previous session.