EURO HITS TEN-DAY LOW VS GREENBACK, ECB MEETING ON TAP

On Monday the single currency traded at its lowest level against the dollar in 10 days after official data showed that economic growth in China was stronger than economists’ expected in the third quarter.

The euro fell to $1.1305 in early trading, its weakest level since Oct. 9, according to FactSet. It recently bounced back to $1.1328 as investors in Europe and the U.S. are getting ready for a meeting of European Central Bank policy makers on Thursday.

EUR/GBP was last at 0.7315, down 0.48%.

Elsewhere in the currency trading, the dollar was slightly lower against the yen with USD/JPY last trading at 119.39, down 0.04%.

The dollar was also lower against the British pound with GBP/USD last seen at 1.5487, up 0.30%.

Most analysts believe the ECB will maintain its current asset purchasing program at Thursday’s meeting, but almost all of them expect ECB President Mario Draghi to hint at a coming expansion.

Draghi said at the central bank’s September meeting that officials are prepared to expand their program of €60 billion ($67.98) in monthly purchases of private and public debt if the inflation and global growth prospects get worse.

Chinese officials reported that the country’s economy grew by 6.9% in the third quarter, beating expectations by 10 basis points, but still below the government target of 7%.

Investors will now await data on housing starts - the number of new-residence construction projects begun last month. Analysts say it will be the most widely anticipated piece of U.S. data released this week.

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KIWI RISES VS GREENBACK WHILE AUSSIE STEADY NEAR 2-WEEK LOWS

On Thursday the New Zealand dollar rose against its U.S. counterpart, despite the release of downbeat New Zealand trade balance numbers, while its Australian counterpart was steady near two and half week lows.

NZD/USD hit 0.6308 during late Asian trade, the session high; the pair subsequently consolidated at 0.6288.

Earlier Thursday, Statistics New Zealand reported that the country's trade deficit expanded to NZ$1,035 million in August from NZ$649 million the previous month. Analysts had expected the trade deficit to widen to NZ$850 million last month.

Elsewhere, AUD/USD hit 0.6992 during late Asian trade, the session low; the pair settled at 0.6983.

The U.S. dollar had strengthened after comments by some Federal Reserve officials Monday night signaled that a U.S. rate increase is still on the cards this year.

In separate comments, St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart signaled that the Fed rate increase is not off the table this year.

Investors were now awaiting a speech by Fed Chair Janet Yellen later in the day for additional clarity on the bank’s decision last week to leave interest rates on hold.

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DOLLAR EXTENDS LOSSES FRIDAY AFTER FED STANDS PAT

On Friday the dollar extended its losses against the yen in a fluctuating Asia trade, underscoring investors’ wariness over softness in the global economy and markets given the Federal Reserve’s decision to keep interest rates unchanged.

In a highly-anticipated decision Thursday, the Federal Reserve left short-term interest rates unchanged after weeks of hot market-churning debate over whether the central bank would end an era of near-zero rates.

Fed Chairwoman Janet Yellen said concerns about inflation, China and financial markets contributed to the Fed’s decision to stand pat.

The selling of the dollar has also been accelerated by a sharp decline in the benchmark Nikkei Stock Average midday, which deepened the risk-averse mood and spurred buying into the perceived safety of the Japanese currency. The Nikkei was last down 1.96% midday.

USD/JPY was last at 119.71, compared with 120.03 late Thursday in New York, tracking the overnight dollar selling that brought the U.S. currency from around 120.90 before the Fed concluded its two-day policy meeting.

The greenback was slightly stronger against the euro, which declined to $1.1401 from $1.1434 late Thursday, after hitting its three-week high of $1.1441 overnight.

The shared currency was at ¥135.75 from ¥137.22 earlier.

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