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FOREX-Dollar bloc currencies buoyant; greenback treads water vs yen, euro

Published 08/06/2016, 10:22 am
Updated 08/06/2016, 10:30 am
© Reuters.  FOREX-Dollar bloc currencies buoyant; greenback treads water vs yen, euro
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* Australian, Canadian dollars stand near 1-month highs

* Aussie boosted as RBA shows it is in no hurry to cut rates

* Crude oil climbing above $50 a barrel lifts Canadian dollar

* USD seen on defensive at least until next week's Fed meeting

By Shinichi Saoshiro

TOKYO, June 8 (Reuters) - The dollar bloc currencies such as the Australian and Canadian dollars held on to large gains on Wednesday, supported by monetary policy expectations and higher commodity prices, while the U.S. dollar treaded water against the yen and euro.

The Australian dollar was little changed at $0.7454 AUD=D4 after surging more than 1 percent overnight to a one-month high of $0.7478 after the Reserve Bank of Australia stood pat on monetary policy and hinted it was not in a hurry to raise rates.

The Canadian dollar hovered near C$1.2753 CAD=D4 per dollar, a one-month high reached Tuesday as crude oil prices rose above the $50 threshold for the first time since July 2015.

The Aussie and Loonie were also well supported as the U.S. dollar suffered large losses against its peers over the past week after Friday's much weaker-than-expected U.S. non-farm payrolls report dashed hopes for a June interest rate increase by the Federal Reserve.

The dollar was flat at 107.315 yen JPY= off the one-month low of 106.35 touched on Monday but still a long way away from the recent peak of 111.455 scaled at the end of May.

The euro was effectively unchanged at $1.1359 EUR= , having closed the last two days virtually flat after a 2 percent surge on Friday's disappointing U.S. non-farm report.

"A June U.S. rate hike is now out of the question and the focus is whether the Fed provides any hints of a July hike. There are no major U.S. indicators until the Fed's policy meeting next week, and the dollar is likely to remain bearish until then," said Junichi Ishikawa, forex analyst at IG Securities in Tokyo.

The Fed concludes a two-day policy meeting on June 15.

Elsewhere, the speculation over whether Britain will vote to remain in the European Union at a referendum on June 23 continued to sway the pound.

Sterling was steady at $1.4540 GBP=D4 after having gained roughly 0.8 percent overnight as two polls gave a narrow lead to the "Remain" camp.

The New Zealand dollar traded at $0.6960 NZD=D4 , dipping slightly from a one-month peak of $0.6982 touched overnight. The Reserve Bank of New Zealand announces its policy decision early on Thursday with the market expecting the central bank to keep monetary policy unchanged. (Editing by Jacqueline Wong)

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