The dollar nursed losses against Asian currencies on Thursday, after softer-than-expected global economic data muddied the interest rate outlook and pushed down U.S. yields ahead of the Federal Reserve's Jackson Hole symposium.

The Australian dollar , which had been taking a battering on signs of China's slowdown and resilience in the U.S., jumped 0.9% on Wednesday after U.S. manufacturing and services PMIs missed expectations.

It held those gains on Thursday, as did the New Zealand dollar and, for the most part, the Japanese yen and emerging market currencies in Asia.

U.S. business activity growth was its weakest since February as the economy seems to be starting to stall, August data published on Wednesday showed.

Ten-year U.S. yields tumbled 13 basis points (bps) to 4.198% on the news, their sharpest one-day slide in more than three months, taking some of the heat out of recent rises.

Europe's manufacturing output continued to shrink and services activity fell into decline, surveys showed, dampening any boon for the euro, which steadied at $1.0866 in Asia.

British factory output slumped, leaving the economy on course for recession and sending the pound on a round trip that finished near where it began at $1.2719.

The dollar index, which measures the greenback against a basket of six major currencies remains higher for the month, but dipped about 0.2% on Wednesday and was flat at 103.39 through the Asia session.

The New Zealand dollar was a touch softer at $0.5968, as was the yen at 145.17 per dollar, though moves were small as traders were cautious in case of possible surprises that could lift the dollar when Fed Chair Jerome Powell speaks at Jackson Hole on Friday.

Source : Reuters