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Forex - Dollar pushes higher but gains checked before US jobs data

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Investing.com -

Investing.com - The dollar gained ground against the other major currencies on Thursday after weak Chinese factory data boosted expectations of further stimulus by Beijing, but gains were held in check ahead of Friday's U.S. nonfarm payrolls report.

USD/JPY was up 0.24% to 120.15 from overnight lows of 119.75.

Two surveys of China's manufacturing sector released on Thursday showed that factory activity continued to slow in September, adding to fears over the outlook for the world's second largest economy.

China's Caixin manufacturing index fell to 47.2 in September from 47.3 in August, the fastest contraction since March 2009.

The official manufacturing index ticked up to 49.8, up from 49.7 in August, but remained in contraction territory.

The Australian dollar gained following the Chinese data, with AUD/USD last up up 0.63% to 0.7062. China is Australia's largest export market.

The yen remained under pressure following a mixed reading from Japan's Tankan corporate sentiment survey.

The euro was lower against the dollar, with EUR/USD slipping 0.16% to 1.1159, while EUR/JPY was little changed at 134.009.

The single currency remained on the back foot one day after data showing that the euro zone fell back into negative inflation in September, with the consumer price index falling 0.1%, adding to pressure on the European Central Bank to enlarge its stimulus program.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, eased up 0.10% to 96.51.

Demand for the dollar continued to be underpinned after data on Wednesday showed that the U.S. private sector added 200,000 jobs last month.

Investors were turning their attention to Friday's U.S. jobs report for September, which could help to provide clarity on the likelihood of a near-term interest rate hike by the Federal Reserve.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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