Home Forex Dollar Holds Steady, Aussie Gains as Trading Resumes in U.S.

Dollar Holds Steady, Aussie Gains as Trading Resumes in U.S.

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signs of some currencies: yuan dollar yen and Australian dollar

The dollar was virtually unchanged on Tuesday as markets in the U.S. resumed trading after Monday’s holiday and investors remain uncertain as to whether the Federal Reserve will raise rates this year.

The dollar index was at 95.67 this morning, holding steady near a one-week low of 95.17. The dollar dipped against a basket of major currencies after a downbeat jobs report on Friday.

The report showed that the U.S. economy added 151,000 last month, falling short of analysts’ estimates of 180,000 jobs.

The disappointing jobs data lowered expectations of a rate increase by the end of the year. The prospect of higher interest rates makes the dollar a more attractive option to yield-seeking investors.

The euro was slightly higher against the dollar, trading at 1.1159, while the yen moved ahead, with USD/JPY at 103.34.

The euro was boosted by anticipation of the European Central Bank’s meeting later in the week, which will give the currency pair some direction. The ECB kicks off a round of major central bank meetings due this month.

The dollar pared its gains against the yen on Monday after comments from BOJ Governor Haruhiko Kuroda indicated that while the central bank is prepared to implement further easing measures, no timetable was given, nor were any details of the bank’s options.

Meanwhile, the Aussie saw gains, climbing nearly 1%. The Reserve Bank of Australia has remained quiet on the its 10% increase since the start of the year.

New data out of Australia shows that government spending and the country’s account deficit saw solid growth in the last quarter. The RBA is expected to keep rates on hold at its next meeting.

RBA Governor Glenn Stevens gave the Aussie’s strength little acknowledgement at the central bank’s last meeting.

The Aussie was up as much as 0.9% against its U.S. counterpart in European morning trade, trading at $0.7655.

 

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