Euro rises in New York

The euro crept back from a two-week low on Monday as profit-taking in the dollar offset data highlighting the diverging paths of the US and European economies. But fears over Greece's progress in completing a debt- restructuring deal were expected to keep the single currency under pressure this week.
In addition, Chinese Premier Wen Jiabao's reduction in his country's annual growth target to 7.5 percent, the lowest rate in eight years, also highlighted concerns about the global economy. The Australian and New Zealand dollars, which are closely correlated with global growth, slumped.
China's central bank governor, Zhou Xiaochuan, meanwhile, told the official Xinhua news agency on Monday that China will allow the yuan exchange rate to float in a wider range. The euro fell to $1.3158, its lowest level since February 17, after the release of dismal euro-zone data. That level represented a key technical support, the 38.2 percent Fibonacci retracement of the euro's January 24 high of $1.3486.
"When you come to this pivotal area, it needs a catalyst to push it through. But we are drifting here until further headlines so traders are playing the technicals," said Eric Viloria, senior currency strategist at Forex.com in New York. The euro rebounded to trade up 0.1 percent at $1.3219 in late New York activity.
In other currencies, China's lowered target for its growth rate drove trends on Monday, with the Australian and New Zealand dollars last trading 0.66 percent and 1.07 percent lower against the dollar, respectively. Against the yen, the dollar slipped from a nine-month high on Monday, after rising more than 7 percent in about a month. The dollar last traded down 0.33 percent versus the yen to 81.52 yen, retreating from Friday's high of 81.873 yen. The dollar's next major hurdle is seen at the 100-week moving average around 82.10 yen, according to Reuters data.