Investing.com - The dollar held steady against other majors currencies on Tuesday, as investors remained cautious regarding progress on the U.S. tax reform front and as they awaited the release of U.S. housing sector data due later in the day.
Trading volumes were expected to become more and more thin throughout the week, ahead of the Christmas holiday.
The greenback was initially boosted after Republicans on Friday put the finishing touches on a sweeping tax overhaul bill.
They are confident Congress will now pass the tax bill this week, with a Senate vote planned as early as Tuesday.
Market participants were looking ahead to reports on U.S. building permits and housing starts, due later Tuesday for further indications on the strength of the housing maket.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.19 by 02:05 a.m. ET (06:05 GMT).
EUR/USD edged up 0.12% to 1.1795, while GBP/USD held steady at 1.3388.
The euro remained support after Germany's Social Democrats agreed on Friday to open coalition talks with Chancellor Angela Merkel, providing a chance to end the country's political deadlock. However, the talks are not expected to begin until January.
Later Tuesday, German was slated to release its Ifo business climate report.
The yen and the Swiss franc were almost unchanged, with USD/JPY at 112.53 and with USD/CHF at 0.9852.
Elsewhere, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.12% at 0.7671 and with NZD/USD adding 0.17% to trade at 0.7007.
Earlier Tuesday, data showed that the ANZ business confidence index for New Zealand improved to -37.8 in December from -39.3 the previous month.
Separately, the minutes of the Reserve Bank of Australia showed that the central bank is more confident the economy will strengthen further next year, potentially paving the way toward its first policy tightening since 2010.
Meanwhile, USD/CAD held steady at 1.2860.