U.S. Dollar Rises As Traders Bet On Early Rate Hike
04 August 2015 - 2:40PM
RTTF2
The U.S. dollar strengthened against most major currencies in
the Asian session on Tuesday, as traders expect the central bank to
start its tightening cycle this year despite yesterday's national
manufacturing data disappointing to the downside.
The U.S. Labor department is set to publish its jobs report for
July on Friday, which is expected to show a still strengthening
labor market. Economists expect non-farm payrolls to rise to
225,000 jobs in July, up from 223,000 jobs in June.
Meanwhile, Asian stock markets traded lower as the weak cues
from Wall Street overnight and fall in commodity prices dampened
investor sentiment.
Moreover, traders await U.S. factory orders data for June due
later in the day. Trade balance data for June and jobless claims
data are scheduled to be released on Wednesday and Thursday,
respectively.
Monday, the U.S. dollar showed mixed trading against its major
rivals. While the greenback held steady against the euro, the pound
and the yen, it rose against the Swiss franc.
In the Asian trading today, the U.S. dollar rose to an 11-year
high of 1.3175 against the Canadian dollar, from yesterday's
closing value of 1.3154. The greenback may test resistance near the
1.34 region.
Against the Swiss franc and the euro, the greenback advanced to
a 5-day high of 0.9703 and a 4-day high of 1.0931 from yesterday's
closing quotes of 0.9688 and 1.0949, respectively. If the greenback
extends its uptrend, it is likely to find resistance around 0.98
against the franc and 1.08 against the euro.
Moving away from an early low of 123.90 against the yen, the
greenback edged up to 124.09. On the upside, 125.00 is seen as the
next resistance level for the greenback.
Looking ahead, the Reserve Bank of Australia's interest rate
decision is due at 12:30 am ET.
In the European session, U.K. Markit/CIPS construction PMI for
July and Eurozone PPI for June are due to be released.
In the New York session, U.S. factory orders for June and Canada
manufacturing PMI for July are slated for release.
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