* 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 analyst comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 22 (Reuters) - The dollar rose on Tuesday in thin, choppy trading, as optimism about a
U.S. stimulus bill that Congress passed overnight was tempered by concerns about a coronavirus variant
raging in Britain that has caused lockdowns and travel restrictions to contain it.
Risk appetite seemed to have taken a hit, with U.S. stocks down except for the 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 was weaker than expected, with U.S. existing home sales falling more than expected in
November and the consumer confidence index lower than forecast. The weak U.S
reports reinforced the dollar's rally.
Overnight, 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. "The 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 Inc MRNA.O , 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.
"Going into the new year, once the vaccines are rolled out more widely, like at the end of the first
quarter, we're going to have an indication of how this virus plays out," said Ronald Simpson, managing
director of global currency analysis at Action Economics in Florida.
"I still think the dollar is going to remain under significant pressure for the first half of the
year. We have U.S. equities that are overvalued and overpriced. Once COVID calms down there will be more
opportunity in emerging markets," he added.
In midday trading, the dollar index rose 0.5% to 90.59 =USD , as the euro fell 0.6% to $1.2172
EUR=EBS .
The market has been positioned for a weaker dollar. It is 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 0.8% at $1.3361 GBP=D3 . The pound sank versus the euro
as well, down 0.2% at 91.10 pence per euro.
There is a post-Brexit trade deal on the table between Britain and the European Union, and while both
sides want to wrap up negotiations before Christmas Eve, the talks remain strained, the Sun newspaper
reported on Tuesday, citing a senior British source. The Australian dollar AUD= fell 0.7% to US$0.7532. The New Zealand dollar NZD= lost 0.8% to
US$0.7043.
========================================================
Currency bid prices at 12:31PM (1731 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.5720 90.1320 +0.50% +0.00% +90.7210 +90.0550
Euro/Dollar EUR=EBS $1.2176 $1.2248 -0.59% +8.60% +$1.2257 +$1.2161
Dollar/Yen JPY=EBS 103.6250 103.3150 +0.30% -4.65% +103.7300 +103.2950
Euro/Yen EURJPY= 126.17 126.45 -0.22% +3.46% +126.6600 +126.1200
Dollar/Swiss CHF=EBS 0.8887 0.8859 +0.32% -8.15% +0.8897 +0.8846
Sterling/Dollar GBP=D3 $1.3362 $1.3471 -0.78% +0.78% +$1.3467 +$1.3305
Dollar/Canadian CAD=D3 1.2918 1.2858 +0.47% -0.55% +1.2933 +1.2845
Aussie/Dollar AUD=D3 $0.7532 $0.7587 -0.72% +7.35% +$0.7590 +$0.7517
Euro/Swiss EURCHF= 1.0819 1.0841 -0.20% -0.30% +1.0847 +1.0816
Euro/Sterling EURGBP= 0.9109 0.9094 +0.16% +7.75% +0.9155 +0.9084
NZ NZD=D3 $0.7043 $0.7096 -0.75% +4.67% +$0.7105 +$0.7032
Dollar/Dollar
Dollar/Norway NOK=D3 8.7115 8.6340 +1.08% -0.51% +8.7490 +8.6325
Euro/Norway EURNOK= 10.6101 10.6020 +0.08% +7.83% +10.6588 +10.5450
Dollar/Sweden SEK= 8.3202 8.2352 +0.42% -10.99% +8.3450 +8.2442
Euro/Sweden EURSEK= 10.1306 10.0880 +0.42% -3.23% +10.1593 +10.0945