Midday trade in New York: euro falls versus dollar

The euro slid from three-week highs against the dollar on Tuesday, weighed down by unexpectedly strong US factory numbers, with further pressure likely given doubts over the euro area's bond issuance. In midday New York trading, the euro was down 0.3 percent from late on Monday at $1.3306 after hitting three-week peaks at $1.3435.
More support lies at $1.3280 and $1.3250, Monday's lows, traders said. A fall below key support at $1.3250 could prompt more selling in the euro as traders target the 200-day moving average just below $1.3100. Against the yen, the euro reversed gains to trade slightly lower on the day at 109.18. The Aussie dollar fell 1.1 percent to US $1.0055, retreating from a 28-year peak around US $1.0257 set on Friday. Traders said funds sold Aussie for euros, taking profit on long Aussie positions taken in the run-up to the end of 2010.