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SYDNEY (XFN-ASIA) - The US dollar was slightly lower against the yen here and higher against the euro following the stronger-than-expected US non-farm payrolls report released on Friday which showed a 157,000 gain in May, dealers said.
The data was above the market consensus forecast for a 140,000 increase and the 88,000 rise in April. The jobless rate remained at 4.5 pct.
At 9:55 am Sydney (2355 GMT) the dollar was trading at 121.05 yen from 122.08 in late trading in
New York on Friday while the euro was at 1.3445 usd, down from 1.3449 in New York.
Dealers said the euro traded in a narrow range late Friday despite the stronger US data and a weaker euro zone manufacturing purchasing managers index for May, while the yen eased modestly against the US dollar.
The euro zone manufacturing PMI survey fell to 55.0 points in May from 55.4 in April and was against market forecasts of a slight rise to 55.5 points.
Dealers said the euro and sterling are likely to remain range-bound ahead of their respective central bank meetings this week.
The European Central Bank is widely expected to raise official rates by 25 basis points to 4.00 pct on Wednesday, while the Bank of England is tipped to announce interest rates will remain at 5.5 pct but indicate an upside risk to interest rates ahead.
Meanwhile, US Commerce Department data released on Friday showed a 2.0 pct year-on-year increase in April for the core measure of personal consumption expenditures. This was down from 2.0 pct over the year to March and moving within the Federal Reserve's comfort band of 1-2 pct.
Commonwealth Bank senior economist John Peters said the Federal Reserve may feel reassured by the second consecutive soft monthly outcome in the core PCE deflator, but it will require further easing of inflation pressures in the coming months before making any shift in its rhetoric.
"We still see the Federal funds rate on hold at 5.25 pct throughout 2007," he said.
Dealers said few key economic data releases are due tonight while US factory orders for April are forecast to show a smaller rise of 0.7 pct from the 3.5 pct surge in March.
Sydney 9.55 am (2355 GMT)
US dollar
122.05 yen
1.2297 sfr
Euro
1.3445 usd
164.06 yen
1.6532 sfr
0.6782 stg
Sterling
1.9825 usd
241.91 yen
2.4377 sfr
Australian dollar
0.8324 usd
0.4198 stg
101.57 yen
New Zealand dollar
0.7444 usd
SYDNEY (XFN-ASIA) - The US dollar was slightly lower against the yen here and higher against the euro following the stronger-than-expected US non-farm payrolls report released on Friday which showed a 157,000 gain in May, dealers said.
The data was above the market consensus forecast for a 140,000 increase and the 88,000 rise in April. The jobless rate remained at 4.5 pct.
At 9:55 am Sydney (2355 GMT) the dollar was trading at 121.05 yen from 122.08 in late trading in
New York on Friday while the euro was at 1.3445 usd, down from 1.3449 in New York.
Dealers said the euro traded in a narrow range late Friday despite the stronger US data and a weaker euro zone manufacturing purchasing managers index for May, while the yen eased modestly against the US dollar.
The euro zone manufacturing PMI survey fell to 55.0 points in May from 55.4 in April and was against market forecasts of a slight rise to 55.5 points.
Dealers said the euro and sterling are likely to remain range-bound ahead of their respective central bank meetings this week.
The European Central Bank is widely expected to raise official rates by 25 basis points to 4.00 pct on Wednesday, while the Bank of England is tipped to announce interest rates will remain at 5.5 pct but indicate an upside risk to interest rates ahead.
Meanwhile, US Commerce Department data released on Friday showed a 2.0 pct year-on-year increase in April for the core measure of personal consumption expenditures. This was down from 2.0 pct over the year to March and moving within the Federal Reserve's comfort band of 1-2 pct.
Commonwealth Bank senior economist John Peters said the Federal Reserve may feel reassured by the second consecutive soft monthly outcome in the core PCE deflator, but it will require further easing of inflation pressures in the coming months before making any shift in its rhetoric.
"We still see the Federal funds rate on hold at 5.25 pct throughout 2007," he said.
Dealers said few key economic data releases are due tonight while US factory orders for April are forecast to show a smaller rise of 0.7 pct from the 3.5 pct surge in March.
Sydney 9.55 am (2355 GMT)
US dollar
122.05 yen
1.2297 sfr
Euro
1.3445 usd
164.06 yen
1.6532 sfr
0.6782 stg
Sterling
1.9825 usd
241.91 yen
2.4377 sfr
Australian dollar
0.8324 usd
0.4198 stg
101.57 yen
New Zealand dollar
0.7444 usd
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