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FOREX-Dollar upheld before jobs data, Aussie slides after RBA comments


* Dollar index binds above new 8-week low

* Solid U.S. private-sector employing rises wish for nonfarm
payrolls

* Aussie dollar falls after RBA’s Stevens warns on currency
strength

(Adds comments, updates prices)

By Ian Chua and Masayuki Kitano

SYDNEY/SINGAPORE, Jul 3 (Reuters) – The dollar hold firm
above a new eight-week low on Thursday, upheld by hopes
for a healthy arise in nonfarm payrolls, while a Aussie fell
after Australia’s executive bank arch warned that markets are
underestimating a risk of a pointy tumble in a currency.

Figures from U.S. payrolls processor ADP expelled on
Wednesday combined to a fibre of bullish U.S. information trimming from
manufacturing to automobile sales, ancillary a perspective that a U.S.
economy has bounced behind smartly after a first-quarter slump.

Benchmark U.S. Treasury yields rose to the
highest in over a week during 2.63 percent on Wednesday in reaction
to a data, that in incited helped lift a dollar opposite a
basket of vital currencies.

The dollar index inched adult about 0.1 percent to 79.999
, carrying pulled adult from an eight-week tray of 79.740
plumbed on Tuesday.

Against a yen, a greenback rose 0.1 percent to 101.87
yen, carrying usually recently strike a six-week low nearby 101.23.

ADP pronounced private employers combined 281,000 workers to payrolls
last month, a largest given Nov 2012, charity hopes for
a healthy arise in nonfarm payrolls when a information is released
later on Thursday.

“Our economists determine with marketplace accord looking for
non-farm payrolls to arise by some-more than 200,000 for a fifth
consecutive month,” analysts during BNP Paribas wrote in a note to
clients.

“If a foresee turns out to be correct, this will symbol the
first five-month run of above 200,000 prints given January
2000.”

The euro eased 0.1 percent to $1.3648. The single
currency hovered next a six-week high of $1.3701 set earlier
this week, as a marketplace incited a concentration to a assembly by the
European Central Bank after on Thursday, as good as a U.S.
jobs data.

The ECB is doubtful to take uninformed process movement during a July
gathering after slicing seductiveness rates to record lows final month
- a deposition rate to next 0 – and divulgence a 400
billion-euro ($545.62 billion) loan programme.

“Although no movement is approaching from a ECB during a meeting
today, we expect that it will say a dovish tinge in
the face of diseased PMI prints, low inflation, and diseased bank
lending,” pronounced analysts during BNP Paribas.

AUSSIE STUNG

The Australian dollar fell 0.7 percent to $0.9377.
The Aussie pulled serve divided from an eight-month rise of
$0.9505 set on Tuesday, entrance underneath vigour after Reserve Bank
of Australia Governor Glenn Stevens warned investors they were
underestimating a risk of a poignant tumble in a Australian
dollar.

A diseased reading on Australian sell sales also combined to the
already soothing tinge of a Aussie dollar, that had retreated on
Wednesday on profit-taking in a arise of disappointing
Australian trade data.

The Aussie’s dump next $0.9400 triggered stop-loss selling,
said Jeffrey Halley, FX merchant for Saxo Capital Markets in
Singapore.

“Basically, Governor Stevens timed his articulate down of the
Australian dollar ideally to coincide with a soothing market,”
Halley said.

While a Aussie might find some support during levels around
$0.9370 and $0.9355, a dump to $0.9300 is now on a cards,
Halley added.

(Additional stating by Naomi Tajitsu in Wellington; Editing
by Shri Navaratnam)

Article source: http://in.reuters.com/article/2014/07/03/markets-forex-idINL4N0PE00G20140703

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