Home Economy Dollar soft, Aussie firm as sentiment recovers before U.S. jobs data

Dollar soft, Aussie firm as sentiment recovers before U.S. jobs data

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Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee/Illustration/File Photo

TOKYO, Oct 8 (Reuters) – The safe-haven dollar hovered below a one-year high to major peers on Friday amid improved risk sentiment, while traders awaited clues on the pace of Federal Reserve policy normalization from a closely watched monthly payrolls reports.

The risk-sensitive Australian dollar held near the three-week high hit overnight, when it surged 0.55% against the greenback.

Global equities rallied and bond yields climbed after U.S. Senate leaders moved to avert a U.S. debt default, while a global easing in energy prices tempered simmering stagflation fears.

“The improvement in risk appetite favours pro-growth currencies, with safe-haven pairs the underperformers,” Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney, wrote in a client note.

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