SINGAPORE- The dollar loitered around multi-week lows on Thursday, pressured by softer-than-expected US labor data as traders awaited a fuller jobs readout, which is expected to guide the timing of Federal Reserve’s pullback in bond buying.
The greenback was also dented overnight by a rising euro, which climbed to a one-month high of $1.1857 after a survey showed strong European manufacturing growth coupled with inflationary pressure from supply-chain snarls.
The euro also touched its highest in a month at 130.44 yen overnight and made a six-week peak of 86.02 pence. The Australian and New Zealand dollars struck more than two-week highs after the US private payrolls data showed 374,000 hirings last month against a forecast for 613,000.
“The big miss was too big ignore,” said Rodrigo Catril, currency strategist at National Australia Bank, since it could point Friday’s figures falling short of forecasts and prompt traders to push out expectations for Fed asset purchase tapering.
“Bad news in the labor market is good news for risk assets given the punchbowl will remain well liquefied for a bit longer.”
Sterling also edged higher on the softer dollar, but found the going heavy into resistance around $1.38. It last sat at $1.3770 and elsewhere moves were only slight in Asia morning trade, reflecting caution about Friday’s jobs numbers. – Reuters
