The U.S. dollar showed mixed trading against other major currencies in early Asian deals on Monday as investors remained cautious after weak U.S. employment data renewed concerns over the health of the world's largest economy.
While the dollar recovered its recent losses against the yen, it pulled back against the euro, franc and the Canadian dollar. But the dollar showed choppy trading against the pound, Aussie and New Zealand dollar.
The Labor Department's report on Friday showed that U.S. employment continued to increase in June, although the pace of job growth fell well short of estimates. Non-farm payroll employment rose by 80,000 jobs in June versus forecasts for an increase of about 100,000 jobs. The unemployment rate was unchanged at 8.2 percent, in line with estimates.
Extending its Friday's decline, the US dollar touched a 6-day low of 79.44 against the yen by 7:45 pm ET. But the pair rebounded thereafter and is now trading near last week's close of 79.62.
Chinese consumer price inflation data released in the session failed to influence currencies.
Data from the National Bureau of Statistics showed that the CPI rose 2.2 percent on year in June, slowing for the fifth consecutive month. The headline figure was below forecasts for 2.3 percent after coming in at 3.0 percent in May.
Meanwhile, producer prices contracted 2.1 percent on year, also missing expectations for a decline of -2.0 percent after falling an annual 1.4 percent in the previous month.
The dollar that rose to fresh multi-year highs of 0.9802 against the Swiss franc and 1.2257 against the euro at 6:35 pm ET eased thereafter. The dollar is presently worth 1.2290 per euro and 0.9770 against the franc.
Similarly, the U.S. dollar pulled back from a 10-day high of 1.0213 against the Canadian dollar and the pair is currently worth 1.0190.
But the dollar showed choppy trading against the pound, Aussie and New Zealand dollar. At present, the dollar is trading at 1.5492 against the pound, 1.0196 against the Australian currency and 0.7970 against the kiwi dollar.
Looking ahead, Japan's Eco Watchers survey for June is due at 1 am ET.
In the European session, Swiss unemployment rate for June, German trade data for May and the Eurozone sentix investor confidence index for July are slated for release.
Investors also focus on the European Union finance ministers meeting in Brussels later in the day, where the leaders are expected to discuss measures agreed last month to tackle the region's debt crisis.
Also, European Central Bank President Mario Draghi is scheduled to speak in the European parliament after policy makers reduced the main refinancing rate to a record low 0.75 percent on July 5.
Draghi said after last week's decision that the rate cut may have only a "muted" economic impact and growth in the euro area "continues to remain weak with heightened uncertainty."
The U.S. consumer credit for May is slated for release at 3 pm ET.
by RTT Staff Writer
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