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FOREX-Dollar selectively higher on upbeat services data, GBP awaits BOE update

Published 06/08/2015, 10:20 am
Updated 06/08/2015, 10:26 am
© Reuters.  FOREX-Dollar selectively higher on upbeat services data, GBP awaits BOE update
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* Dollar up versus yen and commodity currencies

* Upbeat services report keeps September Fed hike in view

* Aussie eyes jobs data, sterling awaits BOE update

By Ian Chua

SYDNEY, Aug 6 (Reuters) - The dollar held at two-month highs versus the yen early on Thursday, having risen against some currencies on new data supporting the case for a hike in U.S. interest rates next month.

The greenback fetched 124.835 yen JPY= after briefly popping above 125.000 for the first time since early June. It also hit a fresh six-year high on the New Zealand dollar, which skidded to $0.6490 NZD=D4 .

Dollar bulls took heart after the Institute for Supply Management's services sector index jumped to 60.3 last month, the highest reading since August 2005.

The upbeat report helped offset a slowdown in U.S. private job growth and comments from Fed Governor Jerome Powell.

Powell said Fed policymakers have not yet decided whether to raise interest rates next month, in contrast to more hawkish comments from Atlanta Fed President Dennis Lockhart.

"USD and U.S. yields seesawed on the mixed data, but emerged higher with the booming non-manufacturing ISM outweighing ADP private payrolls data," noted Sean Callow, senior currency strategist at Westpac Bank.

The dollar, though, failed to make much headway against the euro, which drifted up to $1.0904 EUR= from a two-week low of $1.0847.

Sterling also climbed out of a two-week trough at $1.5526 GBP=D4 to $1.5607 as investors bet that a "Super Thursday" of Bank of England publications would take it closer to its first increase in rates in nearly a decade.

The BOE will release a mass of information at 1100 GMT, combining several major policy announcements that were previously made separately, and Governor Mark Carney is due to hold a media conference.

The firmer euro and sterling saw the dollar index .DXY retreat to 97.884, from a three-month high of 98.218.

In Asia on Thursday, the focus will be on Australia's employment report due at 0130 GMT.

Any disappointment with the numbers will add pressure on the Aussie, which was last at $0.7352 AUD=D4 , off this week's peak of $0.7428.

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