Dollar keeps small gains on weak U.S employment data
The dollar climbed on Thursday morning in Asia but stayed close to multi-week lows due to weak United States employment data. Investors anticipate the latest U.S. jobs report that will determine the Federal Reserve’s timeline for asset tapering.
The U.S. Dollar Index that measures the greenback against other major currencies tallied an increase of 0.06% to 92.507 by 10:38 PM ET (2:38 AM GMT).
The USD/JPY pair declined 0.01% to 109.97, and the AUD/USD pair slid 0.03% to 0.7361.
The NZD/USD pair dropped 0.08% to 0.7063, while the USD/CNY pair nudged 0.06% higher to 6.4622.
The GBP/USD pair gained 0.05% to 1.3775.
The ADP nonfarm employment change in August was 374,000 based on the U.S. data released on Wednesday, sharply lower than a 613,000 change forecast.
National Australia Bank currency strategist Rodrigo Catril said the significant gap could indicate that the jobs report would come in below expectations and would lead investors in stalling their Fed asset cutting expectations.
Fed Chairman Jerome Powell reiterated that a recovery in the labor market would be a deciding factor on the matter.