US durable goods orders rose 5.6% in November, beating estimates of 2.4%, and improving from October's 2.1% decline.
Core orders, excluding transportation, fell 0.1%, beating estimates of a 0.2% dip, and below October's 0.1% rise.
Dollar rose in European trade against a basket of major rivals, holding above eight-month lows amid improving demand on the greenback from low levels.
It comes ahead of important US growth data for 2022's fourth quarter, which will provide important clues on the pace of policy tightening next week.
The Index
The dollar index rose 0.3% to 101.85, with the lowest since May 2022 at 101.50, after losing 0.3% yesterday, the second loss in a row on current pricing for Fed rates.
Fed Rates
Pricing for a 0.25% rate hike by the Federal Reserve in February stands at 100%, slowing it down from recent 0.5% rate hikes.
Growth Data
Markets are awaiting US GDP growth data before taking positions, with weak data forcing the Fed to slow down its pace of policy tightening, in turn weakening the greenback.
US GDP growth is expected at 2.6% in the fourth quarter, slowing down from 3.2% in the third quarter of 2022.