Reuters: US Dollar Report: FOREX-Dollar moves sideways ahead of triple job report, Aussie on the defensive

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FOREX-Dollar moves sideways ahead of triple job report, Aussie on the defensive Jun 5th 2013, 03:09 Tue Jun 4, 2013 11:09pm EDT * U.S. dollar slowly recovering from Monday's selloff * U.S. ADP report in focus ahead of Friday's payrolls * Aussie dollar remains pressure after Q1 GDP underwhelms By Sophie Knight and Ian Chua TOKYO/SYDNEY, June 5 (Reuters) - The dollar's recovery from an early-week selloff paused on Wednesday as investors awaited a trio of U.S. job reports, while the Australian dollar took a hit after disappointing growth data. The Aussie fell to as low as $0.9605 to approach the 19-month trough of $0.9528 plumbed late last month after data showed Australia's economy grew 0.6 percent in the first quarter, slower than an average forecast of 0.8 percent in a Reuters poll. "The Aussie is on such a downward trend that, without something overwhelmingly positive, all news is taken as negative," said Kenichi Asada, manager of forex at Trust & Custody Services Bank. The Aussie pared losses to last trade at $0.9629, but was still a long way off a peak of $0.9792 hit on June 3 before the Reserve Bank of Australia kept its easing bias, with its cash rate at a record low 2.75 percent. Against a basket of currencies, the U.S. dollar was flat against late U.S. levels at 82.713, though was some way above a one-month low of 82.428 plumbed on Monday in the wake of disappointing manufacturing data that argued against an early start for the Federal Reserve to unwind its stimulus programme. That has put Friday's non-farm payrolls (NFP) in the spotlight for dollar bulls. A report by payrolls processor, ADP, due later on Wednesday, will be closely watched for clues on the NFP report. Even the weekly jobless claims series has gained far more attention as investors try and second guess the Fed. "Our U.S. economists expect an above-consensus 200,000 print in the ADP May employment release, which should signal private sector job expansion stronger than the overall pace of hiring in the economy that is restrained by government spending sequestration," analysts at BNP Paribas wrote in a client note. "Firmer U.S. data should bring some relief to USD longs, although we do not expect an aggressive rush into new positions until Friday's key payrolls report." The dollar hung at 100.10 yen after being plucked off Monday's one-month trough of 98.86 by importers eager to buy on the dip, according to traders. "The dollar-yen recovered after breaking through to the 99 level likely because a lot of Japanese companies have stated that around 100 is their ideal level, so there's a lot of bidding interest below there," said Yoshio Takahashi, currency strategist at Barclays in Tokyo. A Reuters survey published in May found that nearly half of the Japanese companies surveyed wanted the dollar to stabilise around 100 yen. Market participants are now awaiting a speech from Japanese Prime Minister Shinzo Abe's on his new growth strategy due at 0330 GMT. Japanese media reported on Wednesday that he will pledge to boost incomes by 3 percent and allow tax cuts in special economic zones. "Although this may change in a few hours once Abe speaks, I actually think the market is eyeing a stronger yen for now. I see the bottom of its range around 98.5 and resistance around 101," said Asada of Trust & Custody Services Bank. The euro was at $1.3079, easing back from a one-month high of $1.3108. Resistance is seen around $1.3141, the 76.4 percent retracement level of the euro's May 1-17 fall. Link this Share this Digg this Email Reprints

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