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FOREX-Dollar wavers ahead of US jobs data, oil slide hits commodity currencies

Published 01/09/2016, 10:37 am
Updated 01/09/2016, 10:40 am
FOREX-Dollar wavers ahead of US jobs data, oil slide hits commodity currencies
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* Dollar/yen pulls back from 1-month highs

* Crude oil slide weighs on Canadian and Australian dollars

By Shinichi Saoshiro

TOKYO, Sept 1 (Reuters) - The dollar wavered against the yen and euro on Thursday, its advance put on hold ahead of the closely-watched U.S. non-farm jobs report on Friday which is expected to shape the market's near-term interest rate expectations.

Against the safe-haven yen, the dollar was down 0.2 percent at 103.21 JPY= as the region's equities dipped after a slide in crude oil prices dragged down Wall Street shares on Wednesday.

On the week, the U.S. currency has gained about 1.5 percent against the yen following comments from Federal Reserve Chair Janet Yellen last Friday at a central bankers' gathering in Jackson Hole, Wyoming that revived near-term rate hike prospects.

The greenback had briefly advanced to a one-month high of 103.540 yen overnight on a slightly stronger-than-expected U.S. ADP National Employment Report for August, but its rise was tempered after the August Chicago purchasing managers' index (PMI) fell short of expectations. ECONUS

The euro was flat at $1.1159 EUR= , having rebounded on Wednesday from a three-week low of $1.1123. The dollar index .DXY was steady at 96.007 after pulling back overnight from a three-week peak of 96.255.

"The dollar and Treasury yields had risen in tandem following Jackson Hole last week but that phase came to an end yesterday. The dollar will not be making much further headway before Friday's non-farm employment report," said Shin Kadota, chief Japan FX strategist at Barclays (LON:BARC) in Tokyo.

The dollar, on the other hand, fared better against commodity currencies, which were hit by the sharp drop in crude oil prices.

The Canadian dollar was little changed at C$1.3111 CAD=D4 versus the dollar after hitting C$1.3145 overnight, its weakest in three weeks.

The Australian dollar traded flat at $0.7522 AUD=D4 , within distance of a one-month trough of $.07490 probed on Wednesday.

Oil prices fell roughly 3 percent on Wednesday after data showed a large surprise weekly build in U.S. crude and distillate stockpiles and a smaller-than-expected drawdown in gasoline. O/R

(Editing by Kim Coghill)

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