Strong U.S. treasury yields underpinned the U.S. dollar in the Asian session on Friday, as strong GDP data and President Joe Biden's spending plan backed hopes for a faster economic recovery.

The benchmark yield on 10-year note rose 1.64 percent. Yields move inversely to bond prices.

Overnight data showed that U.S. economic growth accelerated in the first quarter, reflecting increases in consumer spending, federal government spending, residential fixed investment, and state and local government spending.

The weekly jobless claims dropped to a new pandemic-era low in the week ended April 24 and pending home sales rose in March, signalling that the recovery is gathering pace.

Asian markets fell after data showed China's factory activity expanded at a slower pace than forecast in April.

Geopolitical tensions between Beijing and Washington and concerns about China's crackdown on tech companies further dampened risk sentiment.

The greenback recovered to 1.2112 against the euro and 1.3933 against the pound, from its early lows of 1.2127 and 1.3958, respectively. The greenback is seen finding resistance around 1.18 against the euro and 1.365 against the pound.

The greenback bounced off to 0.9092 against the franc, off its prior low of 0.9081. Next key resistance for the greenback is likely seen around the 0.93 level.

The greenback advanced to 1.2286 against the loonie, after falling to 1.2268, which was its lowest level since February 2018. If the greenback continues its rise, 1.25 is possibly seen as its next resistance level.

The greenback rebounded slightly to 0.7768 against the aussie and 0.7240 against the kiwi, from its prior lows of 0.7784 and 0.7254, respectively. The greenback is likely to find resistance around 0.75 against the aussie and 0.70 against the kiwi.

In contrast, the greenback edged down to 108.71 against the yen from yesterday's close of 108.92. The greenback may target support around the 107 area.

Looking ahead, Eurozone CPI for April and GDP data for the first quarter are scheduled for release in the European session.

Canada GDP data for February, U.S. personal income and spending data for March and University of Michigan's final consumer sentiment index for April will be featured in the New York session.

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