The dollar held firm while the Australian dollar floated close to more than four-month low on Wednesday, as traders’ waited for European and U.S. data for clues on whether the worst is over for the worldwide economy.

The foreign exchange market showed little reaction to worse-than-expected development in Chinese industrial yield and retail sales for April that emphasized the need for Beijing to level more stimulus measures to support the world's second-biggest economy.

The dollar was supported as trade issues stayed leading on investors' minds after U.S. President Donald Trump on Tuesday insisted that trade discussions with China had not collapsed.

"Investors will continue to monitor key barometer currency pairs," said Nick Twidale, chief operating officer at Rakuten Securities Australia in Sydney.

"The Aussie and (the Chinese) yuan remain under pressure near recent lows," Twidale said in a note. "Traders will be looking for more confirmation of a cooling in the trade war before looking to enter into fresh long positions."

The dollar index versus a basket of six important opponents was largely firm at 97.514, having climbed 0.2 percent in the preceding session.