U.S. Dollar Weakens As Fed Rate Hike Bets Ease After Jobs Data


The U.S. dollar fell against its major counterparts in the New York session on Friday, as jobs data showing a rise in the jobless rate and slower wage growth in February tempered expectations for a 50 basis point hike from the Fed this month.

Data from the Labor Department showed that the unemployment rate rose to 3.6 percent in February from 3.4 percent in January. The unemployment rate was expected to be unchanged.

Wage growth came in at 0.2 percent month-over-month and 4.6 percent year-over-year, below expectations for 0.3 percent and 4.7 percent, respectively.

Nonetheless, non-farm payroll employment shot up by 311,000 jobs in February after spiking by a revised 504,000 jobs in January.

Economists had expected employment to increase by 205,000 jobs compared to the surge of 517,000 jobs originally reported for the previous month.

U.S. treasury yields fell, with the benchmark 10-year yield touching 3.824 percent.

The probability of a 50 basis point increase in the federal funds target rate at upcoming meeting has dropped to 45.4 percent after the data.

The USD/CHF pair touched 0.9230, its lowest level since February 21. At Thursday's close, the pair was valued at 0.9322. The greenback is seen finding support around the 0.90 region.

The USD/JPY pair weakened to a 3-day low of 135.81. The pair was worth 136.12 when it ended deals on Thursday. The greenback may locate support around the 129.00 level.

Data from the Ministry of Internal Affairs and Communications showed that Japan household spending climbed a seasonally adjusted 2.7 percent on month in January - coming in at 301,646 yen.

That exceeded expectations for an increase of 1.4 percent following the 2.1 percent contraction in December.

The greenback dropped to a 3-day low of 1.0644 against the euro from yesterday's close of 1.0578. Should the greenback falls further, it is likely to test support around the 1.08 region.

The greenback depreciated to a 3-day low of 1.2045 against the pound from Thursday's close of 1.1919. The greenback is likely to challenge support around the 1.24 region, if it drops again.

The greenback dipped to 1.3766 against the loonie, from near a 5-month high of 1.3862 hit at 4 am ET. The greenback was trading at 1.3827 per loonie at yesterday's close. Next key support for the greenback is seen around the 1.33 level.

The greenback declined to 0.6633 against the aussie, from a 4-month high of 0.6563 it logged at 9:30 pm ET. The aussie-greenback pair was worth 0.6589 at Thursday's close. The greenback is likely to test support around the 0.68 level.

The greenback fell to a 3-day low of 0.6156 against the kiwi, from a 2-day high of 0.6091 seen at 6 pm ET. At yesterday's trading close, the pair was quoted at 0.6098. Further drop in the currency may face support around the 0.63 level.

U.S. monthly budget statement for February is due in the New York session.