The U.S. dollar strengthened against its major counterparts in European deals on Monday, as traders focus on U.S. data on industrial production and housing market, that may add to signs of improvement in economy.

The Federal Reserve is due to release its industrial production report for November at 9:15 am ET. The consensus estimate calls for a 0.6 percent month-over-month increase in industrial output, after falling by 0.1 percent a month ago.

At 10 am ET, the National Association of Home Builders is scheduled to release the results of its housing market survey for December. Economists expect the housing market index to rise to 59 from 58 in November.

The Federal Open Market Committee will conclude a two-day meeting on Wednesday, with investor focus on whether it would promise to keep interest rates near zero for a "considerable time". The Fed will give its updated forecasts, followed by the chairwoman Janet Yellen's press conference half an hour later.

The greenback closed Friday's New York trading weaker, amid expectations that plunging oil prices may prompt the Federal Reserve to delay its rate hike schedule.

Upbeat consumer sentiment index for December released on Friday failed to lift the dollar up.

The greenback advanced to 0.9673 against the Swiss franc and 1.2415 against the euro, off early lows of 0.9624 and 1.2476, respectively. The next possible resistance for the greenback lies around 0.975 against the franc and 1.23 against the euro.

The greenback spiked up to a 4-day high of 1.5658 against the Sterling, coming off from an early 4-day low of 1.5746. If the greenback extends rise, 1.55 is seen as its next possible resistance level.

Having fallen to a 4-day low of 117.77 against the yen in Asian morning deals, the greenback bounced back to 118.91. Continuation of the greenback's uptrend may lead it to resistance around the 120.00 region.

An index measuring business sentiment in Japan was down slightly in the fourth quarter of 2014, the Bank of Japan revealed in its quarterly Tankan business survey.

The large manufacturers' index came in with a score of 12, missing forecasts for 13, which would have been unchanged from the third quarter.

The greenback neared the 1.16 level against the loonie, climbing to 1.1595 for the first time since July 2009. Next key resistance for the greenback-loonie pair lies around the 1.17 mark.

The greenback rose back to 0.7734 against the NZ dollar, heading to violate an early 5-day high of 0.7729. Against the Australian dollar, the greenback reapproached the 0.821 level, just few pips short to breach early 4-1/2-year high of 0.8203. The greenback is poised to challenge resistance around 0.76 against the kiwi and 0.81 against the aussie.

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