U.S. Dollar Lower Amid Soft ADP Data, Trade War Worries

The U.S. dollar was lower against its most major opponents in the European session on Thursday, as a data showed that U.S. private sector employment grew less than expected in June, while a looming deadline for Washington's implementation of tariffs on China kept investors cautious.

Data from payroll processor ADP showed that private sector employment climbed by 177,000 jobs in June after jumping by an upwardly revised 189,000 jobs in May.

Economists had expected employment to rise by about 190,000 jobs compared to the addition of 178,000 jobs originally reported for the previous month.

Data from the Labor Department showed a modest uptick in first-time claims for U.S. unemployment benefits in the week ended June 30.

The report said initial jobless claims inched up to 231,000, an increase of 3,000 from the previous week's revised level of 228,000. Economists had expected jobless claims to edge down to 225,000.

Trade worries continued, as the U.S. is scheduled to impose tariffs on $34 billion worth of goods from China on Friday. Beijing pledged to fight back with its own $34 billion of tariffs on U.S. goods, escalating conflict.

Investors await minutes from the June 12-13 policy meeting due at 2:00 pm ET for outlook on monetary policy and inflation.

All-important nonfarm payrolls data is due on Friday, with economists expecting an addition of 195,000 jobs in June. The unemployment rate is expected to be steady at the 18-year low of 3.8 percent.

The currency traded mixed against its major rivals in the Asian session. While it rose against the franc and the yen, it fell against the euro. Against the pound, it held steady.

The greenback fell to 9-day lows of 1.3275 against the pound and 1.1720 against the euro, off its early highs of 1.3210 and 1.1650, respectively. The greenback is likely to challenge support around 1.34 against the pound and 1.185 against the euro.

The greenback eased back to 0.9911 against the franc, from a high of 0.9940 hit at 1:00 am ET. The greenback is likely to find support around the 0.98 level.

Data from the Federal Statistical Office showed that Switzerland's inflation continued to rise in June.

Inflation rose to 1.1 percent in June from 1 percent in May. The rate came in line with expectations.

The greenback held steady against the yen, after having advanced to a 2-day high of 110.71 at 5:50 am ET. At yesterday's close, the pair was worth 110.48.

The greenback edged down to 1.3115 against the loonie and 0.7408 against the aussie, from its early high of 1.3160 and a 2-day high of 0.7361, respectively. The next likely downside target for the greenback is seen around 1.30 against the loonie and 0.75 against the aussie.

The greenback slipped to a weekly low of 0.6798 against the kiwi, following a high of 0.6751 seen at 9:00 pm ET. On the downside, 0.69 is possibly seen as the next support level for the greenback.

At 2:00 pm ET, the Federal Reserve releases minutes from the June 12-13 meeting.