U.S. Dollar Higher In Cautious Trade

(RTTNews) - The U.S. dollar firmed against its most major counterparts in the New York session on Wednesday, amid China growth worries and uncertainty about the path of interest rates from the Federal Reserve.

Investors awaited minutes from the Fed's recent policy meeting to determine the trajectory of interest rates.

A warning from Fitch that it may have to downgrade credit ratings of several banks, including JP Morgan, also weighed on sentiment.

Data from the Commerce Department showed that U.S. housing starts rebounded substantially in July.

Housing starts surged 3.9 percent to an annual rate of 1.452 million in July after plunging by 11.7 percent to a revised rate of 1.398 million in June.

Economists had expected housing starts to increase to a rate of 1.448 million from the 1.434 million originally reported for the previous month.

Building permits inched up by 0.1 percent to an annual rate of 1.442 million after tumbling by 3.7 percent to a revised rate of 1.441 million in June.

Building permits were expected to climb to a rate of 1.463 million from the 1.440 million originally reported for the previous month.

The greenback climbed to 1.0895 against the euro and 0.8814 against the franc, setting 2-day highs. The currency may challenge resistance around 1.06 against the euro and 0.90 against the franc.

The greenback was up against the yen, at more than a 9-month high of 145.93. On the upside, 147.00 is seen as its next resistance level.

The greenback rose back to 0.6435 against the aussie and 0.5946 against the kiwi, not far from its previous multi-month highs of 0.6427 and 0.5931, respectively. The currency is seen facing resistance around 0.62 against the aussie and 0.58 against the kiwi.

The greenback touched 1.3511 against the loonie, its highest level since June 1. If the currency rises further, 1.37 is likely seen as its next upside target level.

The greenback held steady against the pound, after falling to a 6-day low of 1.2766 at 5:15 am ET. The pair was worth 1.2700 at Tuesday's close.

The Fed minutes from the July 25-26 meeting will be released at 2 pm ET.