Summary The US dollar gained broad momentum after breaking above 100 yen for the 1st time since early June.
SYDNEY (Reuters) - The U.S. dollar hovered at one-month highs against a basket of major currencies on Wednesday, while Asia shares drooped after a batch of U.S. data reinforced views that the days of easy money from the Federal Reserve are numbered.
U.S. new motor vehicle sales in June were poised to record their strongest month in more than 5-1/2 years, while factories posted a second straight month of gains in new orders in May.
Ordinarily these numbers should bolster risk appetite, but investors at this stage appeared to be more worried that the Fed will keep to its mantra of gradually withdrawing stimulus as the economic recovery continues.
The U.S. dollar gained broad momentum after breaking above 100 yen for the first time since early June. That helped push the euro towards a fresh one-month low near $1.2950. Traders said the threat of political instability in Portugal gave euro sellers an added excuse.
The rally in the greenback left the Australian dollar dangling precariously close to a three-year trough of $0.9110, a complete turnaround from Monday's rally to $0.9253.
Equity investors, meanwhile, were quick to take profits in recent gains following a soggy finish on Wall Street. Some positioning ahead of the U.S. Independence Day holiday on Thursday and key U.S. jobs report on Friday were also cited for the market's cautious stance.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.4 percent, pulling further away from a near two-week high set on Tuesday.
Japanese stocks managed to outperform the rest of Asia thanks to the fall in the yen. The Nikkei share index slipped 0.1 percent after an early push to a fresh five-week high lost steam.
