The weak reading, and fears of
disinflation stemming from the rout in oil prices, led investors to
pare bets that the Fed's long-awaited interest rate hike will come as
early as September.
Friday's
employment data is expected to show the U.S. economy created 225,000 new
jobs in July, according to economists polled by Reuters. The
unemployment rate is expected to hold steady at 5.3 percent.
"If we get some certainty about the strength of the U.S. economy and the likelihood of policy normalization by the Fed, and if a rate hike seems justifiable, that is positive for sentiment for global risk-on because a lot of people have been bracing for this," said Stefan Worrall, director of cash equities at Credit Suisse.
The dollar edged down about 0.1 percent on the day against its Japanese counterpart to 123.90 yen JPY=, while the euro was slightly higher at $1.0958 EUR=.
The Canadian dollar edged up after earlier notching a fresh 11-year low of C$1.3176 per U.S. dollar CAD=D4. Canadian markets will reopen on Tuesday after they were shut for a public holiday on Monday.
The Australian dollar soared 1.2 percent to $0.7375 AUD=D4, moving away from last week's six-year low of $0.7234 after the Reserve Bank of Australia held its cash rate unchanged at a record low 2.0 percent as expected, and also toned down its calls for a weaker currency.
The Aussie also got a lift from Australian retail sales data, which showed a better-than-expected 0.7 percent rise in June, beating expectations of 0.5 percent growth.
Spot gold XAU= edged up about 0.2 percent to 1,088.06 per ounce, but remained not far from a 5-1/2-year low as expectations that the Fed is set to raise interest rates this year undermined the metal.
"If we get some certainty about the strength of the U.S. economy and the likelihood of policy normalization by the Fed, and if a rate hike seems justifiable, that is positive for sentiment for global risk-on because a lot of people have been bracing for this," said Stefan Worrall, director of cash equities at Credit Suisse.
The dollar edged down about 0.1 percent on the day against its Japanese counterpart to 123.90 yen JPY=, while the euro was slightly higher at $1.0958 EUR=.
The Canadian dollar edged up after earlier notching a fresh 11-year low of C$1.3176 per U.S. dollar CAD=D4. Canadian markets will reopen on Tuesday after they were shut for a public holiday on Monday.
The Australian dollar soared 1.2 percent to $0.7375 AUD=D4, moving away from last week's six-year low of $0.7234 after the Reserve Bank of Australia held its cash rate unchanged at a record low 2.0 percent as expected, and also toned down its calls for a weaker currency.
The Aussie also got a lift from Australian retail sales data, which showed a better-than-expected 0.7 percent rise in June, beating expectations of 0.5 percent growth.
Spot gold XAU= edged up about 0.2 percent to 1,088.06 per ounce, but remained not far from a 5-1/2-year low as expectations that the Fed is set to raise interest rates this year undermined the metal.
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