The US dollar remained flat on Wednesday despite a strong US economic data reading.
US manufacturing and services PMI data came out better than expected, although manufacturing activity was still seen as below contraction in February.
The manufacturing index reading rose to 47.8 this month from 46.9 recorded in January and beat forecasts for a 47.1 increase, marking the fourth straight month of declines in factory activity.
Meanwhile, the service index rose to 50.5 in February, up sharply from 46.8 recorded the previous month and beating expectations of 47.5.
Despite that, the giant currency US dollar failed to react to the reading of the data, instead continuing to move at around the same price with the dollar index trading at 104.03 against a group of major currencies.
In contrast to the pound, the currency surged higher following stronger-than-expected PMI data in which UK services activity jumped sharply to an 8-month high in February.
The manufacturing sector remained in contraction but showed an improvement compared to the previous month, recording the highest reading in seven months.
The Euro was little changed even though the European Zone's services sector was recorded stronger, as it was affected by manufacturing activity which continued to show slow growth.
Meanwhile, the results of the Reserve Bank of New Zealand's (RBNZ) policy meeting saw a 50 basis point increase in interest rates raised, prompting the kiwi dollar to surge in early reaction.
The report of the minutes of the FOMC meeting, which will be released early Thursday morning, is now the focus of the next market that can affect the movement of the US dollar and other currencies.
