After weakening against its major peers on improving risk sentiment and disappointing US data on Tuesday, the US Dollar (USD) struggled to maintain its position on Wednesday morning. Later in the session, the US economic calendar will feature the ADP Employment Change and ISM Services Purchasing Managers' Index (PMI) data for January. Investors will also continue to watch comments from central bank officials throughout the day.

The USD index fell about 0.4% on Tuesday after the US Bureau of Labor Statistics reported that JOLTS Job Openings fell to 7.6 million in December, below market expectations of 8 million. Additionally, Wall Street's main indexes gained traction after the opening bell, indicating a positive shift in market sentiment that did not allow the USD to bounce back. However, on Wednesday morning, US stock index futures were trading in negative territory.

During Asian trading hours on Wednesday, the US Customs and Border Protection issued a notice, stating that additional US tariffs of 10% will apply to Hong Kong as well as mainland China. Meanwhile, data from China showed that the Caixin Services PMI fell to 51 in January from 52.2 in December. (Newsmaker23)

Source: FXstreet