SINGAPORE, Feb 2 Reuters The dollar fell broadly on Friday as upbeat big tech earnings on Wall Street boosted investors39; appetite for riskier assets, while traders awaited U.S. job data later in the day to gauge how soon the Federal Reserve could begin easing interest rates.
The closelywatched nonfarm payrolls report later on Friday comes on the heels of the Fed39;s latest policy meeting where rates were kept steady as expected, though Chair Jerome Powell pushed back against market expectations of rate cuts in March.
The riskon mood helped the Aussie tack on 0.33 to last trade at 0.6594, though it was set to end the week only about 0.3 higher, as its gains were capped by a sharp slowdown in domestic inflation.
The New Zealand dollar gained 0.11 to 0.6151 and was on track for a weekly rise of 1, its best performance in over a month.
Against a basket of currencies, the greenback dipped 0.06 to 102.99 , extending a 0.5 fall from the previous session. The dollar index was on track for its first weekly decline of the year.
If we have a relatively soft payrolls number… then I think you39;d probably see the needle move a little bit further back, closer to 5050 for March rate cut expectations, Ray Attrill, head of FX strategy at National Australia Bank, said of Friday39;s U.S. jobs report.
I think the dollar will be quite sensitive to that.
Market pricing now shows a 37.5 chance of a Fed cut in March, as compared to an over 70 chance a month ago, according to the CME…