U.S. Dollar Advances As Strong Data Lifts Rate Hike Odds

The U.S. dollar strengthened against its key counterparts in the Asian session on Thursday, as upbeat U.S. service sector data added to prospectus for a Fed rate hike in December. Data from the Institute for Supply Management showed that its non-manufacturing index jumped to 59.8 in September, its highest since August 2005, from 55.3 in August. Economists had expected the index to inch up to 55.5. The survey came on the heels of in line creation in ADP private sector employment in September. ADP said private sector employment rose by 135,000 jobs in September after surging up by a revised 228,000 jobs in August. The weekly jobless claims, international trade and factory orders are slated for release later in the day, while the September jobs report is due to be released on Friday.

Reversing from an early low of 1.1764 against the euro, the greenback edged up to 1.1748. If the greenback rises further, 1.16 is possibly seen as its next resistance level.

The greenback advanced to a 2-day high of 1.3225 against the pound, after having fallen to 1.3249 at 1:00 am ET. The next possible resistance for the greenback is seen around the 1.31 mark.

The greenback rose back to 112.84 against the Japanese yen, from a low of 112.70 hit at 5:00 pm ET. The greenback is poised to locate resistance around the 113.5 region.

The greenback was trading in a positive territory against the Swiss franc with the pair trading at 0.9754. On the upside, 0.985 is possibly seen as the next resistance for the greenback.

The greenback rose to a session's high of 0.7147 against the kiwi, from Wednesday's closing value of 0.7168. The greenback is poised to challenge resistance around the 0.70 mark.

The greenback that closed Wednesday's trading at 0.7861 against aussie climbed to a 2-day high of 0.7819. Continuation of the greenback's uptrend may see it challenging resistance around the 0.77 area.

The greenback bounced off to 1.2487 against the loonie, from a low of 1.2471 hit at 5:00 pm ET. The greenback is seen challenging resistance around the 1.265 region.

Looking ahead, Swiss CPI data for September, German construction PMI for September and Swiss KOF institute Autumn economic forecast are due to be released shortly.

In the New York session, U.S. weekly jobless claims for the week ended September 30, U.S. trade balance, factory orders and durable goods orders for August, are slated for release.

At 9:10 am ET, Federal Reserve Governor Jerome Powell is expected to speak about the Treasury Markets Practices Group at the Federal Reserve Bank of New York.

At 10:00 am ET, Federal Reserve Bank of Philadelphia President Patrick Harker is scheduled to speak at the Investing in America's Workforce Conference hosted by the Federal Reserve System, in Austin.

At 12:00 pm ET, Bank of England MPC Member Ian McCafferty is expected to speak at The Founders' Company Annual Lecture, in London.

At 1:30 pm ET, Bank of England Chief Economist Andy Haldane is to deliver a presentation titled "Central Bank Engagement with Society" at the Economic Research Council, in London.

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