Charles_Main
AR15 Owner
The US dollar traded near a one-month high versus the euro and the yen after an ADP Employer Services report showed US companies unexpectedly added jobs.
The greenback pared gains as an unexpected decline in gasoline inventories pushed crude oil prices higher. The Australian dollar dropped against all of the other major currencies as a report showed home-building approvals unexpectedly dropped in June.
''The ADP number is not bad, but I think the dollar's rally was a bit stretched,'' said John McCarthy, director of currency trading at ING Financial Markets. ''Then oil spoiled the party.''
The dollar reached $US1.5522 per euro, the strongest level since June 24, before trading at $US1.5584 per euro in New York, compared with $US1.5588 yesterday. The US currency was little changed at 108.08 yen, compared with 108.11. It touched 108.33, the highest level since June 25. The euro traded at 168.44 yen, compared with 168.53.
New Zealand's currency decreased to a 10-month low against the US dollar after Reserve Bank Governor Alan Bollard said in a speech in Auckland that ''weakness in the economy will be sufficient to bring inflation and inflation expectations down over the medium term.'' The kiwi dropped 1.1% to 73.23 US cents after touching 73.16, the lowest since September 25.
The Australian dollar declined 1% to 94.32 US cents on the housing report. It fell 0.3% to $1.2841 versus the New Zealand dollar.
Company Hiring
The US dollar strengthened earlier versus the euro after ADP reported that companies added 9000 jobs in July after cutting a revised 77,000 positions in the previous month. The median forecast of 29 economists surveyed by Bloomberg News was for a reduction of 60,000 jobs.
''The worst may be behind the US dollar,'' said Steven Butler, director of foreign-exchange trading at Scotia Capital. ''Perhaps the US is starting to show some small signs of recovery.''
The Labor Department will probably report on August 1 that non-farm payrolls dropped by 75,000 this month following a decline of 62,000 in June, according to the median forecast in a separate Bloomberg survey.
The US payroll report, which includes government hiring, has shown a reduction in jobs each month this year, while ADP has recorded only two declines
US dollar jumps after jobs grow | smh.com.au
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