* Sentiment stays upbeat on U.S. jobs data
* Investors trim long positions in risky assets like Aussie
* Aussie retreats after brief rise on RBA's positive view
By Satomi Noguchi
TOKYO, Aug 7 (Reuters) - The dollar edged lower against a
basket of currencies on Friday with investors bracing for
important U.S. jobs data which could decide the sustainability of
the recent rally in risk assets such as high-yielding currencies.
The Australian dollar bounced briefly after the Reserve Bank
of Australia's upbeat comments on the economy affirmed
expectations that a rate hike in Australia will come sooner
rather later, but lower Asian stocks and caution ahead of the
release of U.S. nonfarm payrolls data pared gains.
[]
Investors were trimming long positions in risky assets,
including stocks and the Aussie, which had lifted thoses assets
to multi-months highs this week before the key U.S. data, traders
said.
Sentiment in the overall market remained upbeat over the U.S.
nonfarm payrolls, however, after data on Thursday showed a sharp
drop in U.S. jobless claims last week, keeping economic recovery
hopes in tact.
Economists forecast 320,000 jobs were lost in July compared
with a loss of 467,000 jobs in June.
"In order to inject disappointment into the market, huge
negative numbers like -450,000 or -500,000 may be needed," said a
senior trader for a Japanese brokerage firm.
The trader said overall sentiment towards a further rally in
risk assets was so resilient that the market looked capable of
brushing off negative numbers as big as 370,000 or 380,000 job
losses.
The unemployment rate is seen at 9.6 percent, which would be
the highest since June 1983, compared with 9.5 percent the
previous month. []
The dollar index <.DXY>, a gauge of its performance against
six major currencies, edged down 0.1 percent from late U.S. trade
on Thursday to 77.973, staying above 77.428 touched on Wednesday,
a lowest point in more than 10 months.
The Australian dollar fell 0.2 percent to $0.8380 <AUD=D4>,
shedding gains near a 10-month peak of $0.8471 struck earlier
this week. The Aussie slid 0.2 percent against the yen to 79.90
yen <AUDJPY=R>, also erasing earlier gains near its 10-month high
of 80.81 yen hit on Tuesday.
"Among industrial nations Australia has higher interest
rates. A view that its economy will benefit from demand from
China, whose economy is supported by stimulus measures, is making
investors tend to flock to the Aussie," said Ayako Sera, a market
strategist at Sumitomo Trust & Banking.
"That said, a full-fledged recovery in the global economy
needs a recovery in the United States," she said.
Sterling was little changed against the dollar on Friday
after plunging the previous day when the Bank of England kept
interest rates unchanged but surprised markets by raising the
size of a bond purchasing programme designed to boost lending.
[]
Sterling was steady at $1.6776 <GBP=D4> after investors were
mostly through with cutting long positions in the currency after
the BoE's policy decision.
It fell more than 1 percent against the dollar on Thursday
and retreated from this year's peak of $1.7044 hit on the Reuters
dealing system this week.
The euro was 0.1 percent higher at $1.4363 <EUR=> after the
European Central Bank kept interest rates on hold at a record low
on Thursday and hinted growth could return sooner than previously
thought, although the euro zone economy will remain weak this
year. []
The euro earlier this week rose to a 2009 high of $1.4448 on
trading platform EBS.
The dollar slipped 0.2 percent to 95.30 yen <JPY=> on selling
from Japanese exporters repatriating overseas earnings, traders
said.
(Additional reporting by Kaori Kaneko; Editing by Joseph
Radford)
