Dollar edges down as trade tensions simmer ahead of jobs data
TOKYO: The dollar drifted lower on Wednesday as the market looked ahead to US employment data for immediate trading cues, while waiting on developments in President Donald Trump's tariff negotiations with key trading partners including China.
The Trump administration has given a Wednesday deadline for countries to submit their best offers on trade, the same day a doubling of duties to 50 per cent on imported steel and aluminium comes into effect.
Trump is also tipped by the White House to have a call this week with Chinese President Xi Jinping after the two sides accused each other of violating the terms of an agreement last month to roll back some tariffs.
In the meantime, macroeconomic indicators have returned as a driver of the US currency this week, even if trade frictions remain centre stage. The dollar slumped 0.8 per cent against major peers on Monday following a contraction in manufacturing, only to rebound by almost the same amount overnight after a surprise increase in US job openings.
Early on Wednesday, the dollar was down 0.09 per cent at 143.82 yen and the euro was up 0.13 per cent at US$1.1385.
The dollar index, which measures the currency against those two peers and four other counterparts, was flat at 99.159.
Traders will have an eye on the ADP employment report later in the day, in the run-up to crucial US monthly payrolls figures on Friday.
"Job openings were much stronger than expected," Commonwealth Bank of Australia analyst Joseph Capurso said of the overnight JOLTS data, which is closely watched by the Federal Reserve.
"The low estimate for ADP means the USD and US bond yields have a small hurdle to climb for a positive surprise tonight."
Elsewhere, the Australian dollar was little changed at US$0.6460 ahead of the release of GDP figures.
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