* Congress passes U.S. stimulus bill, awaits Trump approval
* Aussie, NZ dollar fall vs dollar
* U.S. housing, consumer confidence data disappoints
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 22 (Reuters) - The dollar rose on Tuesday in thin, choppy trading, as investors stepped back and assessed the implications of the U.S. stimulus bill that Congress passed overnight and a coronavirus variant raging in Britain.
There seemed to be a risk-off tone in the market, with U.S. stocks down except for Nasdaq, and U.S. Treasuries rallying. Currencies associated with higher risk appetite such as the Australian and New Zealand dollars, as well as the euro and sterling were also weaker against the greenback.
Tuesday's data were weaker than expected, with U.S. existing home sales falling more than expected in November and the consumer confidence index lower than forecast. the U.S. Congress passed a $892 billion COVID-19 aid package that aims to shore up the nation's pandemic response and bolster the battered economy. The coronavirus package is tied to general federal government funding to avert a government shutdown and is now awaiting President Donald Trump's approval to become law. stimulus was already baked in as something that would be done. In fact, it seems small and Democrats promised they will do more since more is indeed needed," said Juan Perez, senior trader at Tempus Consulting in Washington.
The new coronavirus variant, meanwhile, roiled markets earlier on Monday, but concerns have eased as medical experts seemed to indicate that the vaccines currently being deployed would be effective against it.
Moderna, for instance, expects immunity from its vaccine to protect against the variant and is performing more tests in coming weeks to confirm, the company said in a statement to CNN. truth is, COVID remains a thorn on the side of Europe and Asia alone isn't the world. This hemisphere and the other side of Atlantic," are lagging in terms of fighting the virus, Perez said.
In mid-morning trading, the dollar index rose 0.3% to 90.37 =USD , as the euro fell 0.2% to $1.2213 EUR=EBS .
The dollar's timid gains come in a market that is positioned for a weaker dollar. It's pricing in a pandemic recovery that lifts commodity prices and benefits exporters and their currencies at the expense of the dollar.
Sterling also slid against the dollar, down 0.9% at $1.3347 GBP=D3 . The pound sank versus the euro as well, down 0.5% at 91.44 pence per euro.
Talks between the French and British governments to reopen their border continued, but trade talks between the European Union and the UK remained stalled, with disagreements over fishing rights the main obstacle.
But Britain crashing out of the EU without a trade deal and expectations that the new coronavirus variant could worsen the economic outlook of Europe might dent the consensus, said Marios Hadjikyriacos, an analyst at XM.
The Australian dollar AUD= fell 0.7% to US$0.7532. The New Zealand dollar NZD= lost 0.8% to US$0.7040.
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Currency bid prices at 10:12AM (1512 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
90.4180
90.1320
+0.33%
+0.00%
+90.4740
+90.0550 Euro/Dollar
EUR=EBS
$1.2207
$1.2248
-0.35%
+8.87%
+$1.2257
+$1.2201 Dollar/Yen
103.6100
103.3150
+0.29%
-4.66%
+103.6350 +103.2950 Euro/Yen
EURJPY=
126.48
126.45
+0.02%
+3.71%
+126.6600 +126.1900 Dollar/Swiss
0.8874
0.8859
+0.17%
-8.29%
+0.8880
+0.8846 Sterling/Dollar GBP=D3
$1.3335
$1.3471
-0.98%
+0.57%
+$1.3467
+$1.3327 Dollar/Canadian CAD=D3
1.2906
1.2858
+0.39%
-0.64%
+1.2913
+1.2845 Aussie/Dollar
AUD=D3
$0.7527
$0.7587
-0.78%
+7.29%
+$0.7590
+$0.7527 Euro/Swiss
EURCHF=
1.0830
1.0841
-0.10%
-0.21%
+1.0847
+1.0822 Euro/Sterling
EURGBP=
0.9150
0.9094
+0.62%
+8.23%
+0.9154
+0.9084 NZ
NZD=D3
$0.7037
$0.7096
-0.82%
+4.59%
+$0.7105
+$0.7038 Dollar/Dollar
Dollar/Norway
NOK=D3
8.7165
8.6340
+1.00%
-0.59%
+8.7275
+8.6325 Euro/Norway
EURNOK=
10.6420
10.6020
+0.38%
+8.17%
+10.6588
+10.5540 Dollar/Sweden
8.3144
8.2352
+0.62%
-11.05%
+8.3203
+8.2442 Euro/Sweden
EURSEK=
10.1501
10.0880
+0.62%
-3.12%
+10.1593
+10.0945