Australian Dollar Falls On Caution Ahead Of U.S. Jobs Data

Australian Dollar Falls On Caution Ahead Of U.S. Jobs Data


The Australian dollar declined against its major counterparts in early Asian deals on Friday as investors remain cautious ahead of the much awaited U.S. jobs data.
The U.S. Labor Department is scheduled to release its monthly employment report at 8:30 am ET. Economists expect the report to show an increase of about 90,000 jobs in June compared to the addition of 69,000 jobs in May. The unemployment rate is expected to remain unchanged at 8.2 percent.
The Australian dollar surged up in Asian and European deals yesterday in response to interest rate cuts by the central banks of China and Europe. In addition, the Bank of England's decision to relaunch monetary stimulus also boosted risky assets.
But the aussie erased its gains in the early New York session as traders seemed reluctant ahead of Friday's monthly jobs report. Also, a number of traders remained away from their desks following the U.S. Independence Day holiday.
Traders also largely shrugged off a report from ADP showing stronger than expected private sector job growth in the U.S. as well as a Labor Department report showing an unexpected drop in weekly jobless claims.
The Australian dollar that ended Thursday's trading at 1.0291 against the U.S. dollar fell to 1.0252 in early Asian deals. The near term support level for the aussie-greenback pair is seen at 1.024.
In economic news from Australia, an index measuring the construction industry came in with a score of 34.8 in June, the Australian Industry Group said, up barely from 34.7 in May but signaling contraction for the 25th consecutive month.
Against the Japanese yen, the Australian dollar slipped to 81.98, compared to yesterday's close of 82.24. On the downside, 81.8 is seen as the next target level for the Australian currency.
The Australian dollar declined to 1.0415 against the Canadian dollar and 1.2077 against the euro. If the aussie weakens further, it may target 1.040 against the loonie and 1.210 against the euro. The aussie-loonie and the euro-aussie pairs were worth 1.0440 and 1.2049, respectively at yesterday's close.
Looking ahead, Japan's preliminary May figures for its leading and coincident indexes are due at 1 am ET.
In the European session, Swiss CPI and U.K. PPI - both for June and the German industrial production for May are slated for release.
Canada's jobs data for June, building permits for May and Ivey PMI for June are expected in the New York morning session.

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