Investing.com - The dollar slipped lower against the other major currencies on Wednesday, as investors locked in profits following the greenback's recent upward and as trading volumes were expected to remain light in the absence of any major economic reports from the U.S.
The dollar found support on Tuesday after the Conference Board said its index of consumer confidence rose to 92.4 this month, the highest since October 2007, from a reading of 90.3 in July.
The data fuelled further optimism over the strength of the U.S. economic recovery.
EUR/USD edged up 0.08% to 1.3179.
Earlier Wednesday, data showed that the Gfk German consumer climate index fell to 8.6 this month, from a reading of 9.0 in July. Analysts had expected the index to remain unchanged in August.
The weak data added to speculation that the European Central Bank could implement fresh easing measures, after ECB President Mario Draghi said at Jackson Hole last week that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
The pound edged higher, with GBP/USD adding 0.18% to 1.6569.
The dollar fell against the yen and the Swiss franc, with USD/JPY down 0.10% to 103.95 and with USD/CHF slipping 0.13% to 0.9163.
Meanwhile, AUD/USD rose 0.29% to 0.9333 and NZD/USD gained 0.40% to 0.8367, while USD/CAD retreated 0.51% to 1.0896.
Official data earlier showed that construction work done in Australia fell by 1.2% in the second quarter, after a 0.4% fall in the first quarter whose figure was revised from a previously estimated 0.3% rise.
Analysts had expected construction work done to decline by 0.3% in the last quarter.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was edged down 0.14% to 82.58.