AFP, Hong Kong :
Asian investors trod warily ahead of a crucial US jobs report Friday while the dollar edged back against its major rivals after a surprise slump in the country’s factory activity.
After this week’s rally in the greenback following Federal Reserve boss Janet Yellen’s upbeat assessment of the US economy and hint at a possible interest rate hike, the unit tumbled Thursday as the closely watched ISM manufacturing gauge hit an eight-month low.
The news threw a spanner in the works a day before the release of non-farm payrolls figures that are largely seen as a barometer of if and when the central bank will move on rates.
“There is potential for markets to whipsaw should we see robust US jobs data tonight,” Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, said in a client note, according to Bloomberg News.
“A stronger US labour market isn’t new news for the Fed or its watchers, rather, it is areas such as manufacturing and retail that are currently causing concern, not to mention a generalised lack of inflation. But nonetheless, payrolls data is traditionally a big market mover, so buckle up.”
After opening further down in Asia, the dollar recovered, to sit at 103.60 yen from 103.23 yen.
The euro eased to $1.1190 from $1.1199 in New York and well up from the $1.1131 in Asia earlier Thursday. The pound fetched $1.3268 against $1.3270 in US trade.However, it retreated against higher-yielding currencies, including the Australian, Singapore and Canadian dollars, South Korea’s won, the Indian rupee and Indonesian rupiah.
Asian investors trod warily ahead of a crucial US jobs report Friday while the dollar edged back against its major rivals after a surprise slump in the country’s factory activity.
After this week’s rally in the greenback following Federal Reserve boss Janet Yellen’s upbeat assessment of the US economy and hint at a possible interest rate hike, the unit tumbled Thursday as the closely watched ISM manufacturing gauge hit an eight-month low.
The news threw a spanner in the works a day before the release of non-farm payrolls figures that are largely seen as a barometer of if and when the central bank will move on rates.
“There is potential for markets to whipsaw should we see robust US jobs data tonight,” Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, said in a client note, according to Bloomberg News.
“A stronger US labour market isn’t new news for the Fed or its watchers, rather, it is areas such as manufacturing and retail that are currently causing concern, not to mention a generalised lack of inflation. But nonetheless, payrolls data is traditionally a big market mover, so buckle up.”
After opening further down in Asia, the dollar recovered, to sit at 103.60 yen from 103.23 yen.
The euro eased to $1.1190 from $1.1199 in New York and well up from the $1.1131 in Asia earlier Thursday. The pound fetched $1.3268 against $1.3270 in US trade.However, it retreated against higher-yielding currencies, including the Australian, Singapore and Canadian dollars, South Korea’s won, the Indian rupee and Indonesian rupiah.
