Investing.com - The dollar slipped lower against the other major currencies on Tuesday, as disappointing U.S. employment data released on Friday prompted investors to push back their expectations for a rate hike by the Federal Reserve.
The dollar was lower against the yen, with USD/JPY down 0.11% at 120.33.
The dollar remained under pressure as weak U.S. jobs data on Friday underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.
On Monday, the Institute of Supply Management reported that its non-manufacturing purchasing managers' index fell to 56.9 in September from a reading of 59.0 the previous month. Analysts had expected the index to tick down to 57.5 last month.
The dollar was also lower against the euro, with EUR/USD adding 0.20% to 1.1210.
Markets shrugged off official data earlier showing that German factory orders declined by 1.8% in August, confounding expectations for a 0.5% gain. Factory orders dropped 2.2% in July, whose figure was revised from a previously estimated 1.4% fall.
Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.17% at 1.5172 and with USD/CHF easing 0.09% to 0.9746.
The Halifax Bank of Scotland reported on Tuesday that its house price index fell 0.9% last month, compared to expectations for a 0.1% uptick, after an increase of 2.7% in August.
The Australian and New Zealand dollars were stronger, with AUD/USD gaining 0.56% to 0.7122 and with NZD/USD edging up 0.12% to 0.6494.
In a widely expected move, the Reserve Bank of Australia left its benchmark interest rate unchanged at 2.00% and added that any changes in monetary policy will be determined by "further information on economic and financial conditions to be received over the period ahead".
The central bank also said that "the available information suggests that moderate expansion in the economy continues".
Separately, official data showed that Australia's trade deficit widened to A$3.095 billion in August from a revised A$2.792 billion in July. Analysts had expected the trade deficit to narrow to A$2.550 billion in August.
At the same time, data showed that New Zealand's NZIER business confidence index fell to a four-year low of minus 14 in the third quarter from a reading of 5 in the three months to June.
Meanwhile, USD/CAD was steady at 1.3079.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% at 96.02.