31 August 2004, 11:05  Dollar on defensive ahead of key data tests

The dollar slipped across the board in early trade on Tuesday as nervousness grew ahead of a series of key U.S. economic indicators later in the week. Monthly U.S. payrolls figures are due on Friday and could be crucial in determining whether the Federal Reserve raises interest rates in September. Before the job figures, the market will be watching data on business activity in the U.S. Midwest and consumer confidence due later in the session and a key U.S. manufacturing report on Wednesday. The dollar stood at $1.2076 per euro and 1.2760 Swiss francs at 0650 GMT, down 0.2 percent on the day. It was also slightly lower against the yen at 109.67 and down half a percent against the New Zealand dollar . Easing oil prices bolstered the yen, allowing to gain against the dollar even after disappointing Japanese economic data. Japanese industrial output was flat in July compared with June, adding to evidence that the economic recovery was slowing and pushing down Tokyo share prices. UK consumer credit and money supply figures are due at 0830 GMT ahead of euro zone inflation data at 0900 GMT but analysts said more attention was likely to be directed at forthcoming U.S. data.////

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