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Dollar moves broadly higher as U.S. data supports

Published 04/01/2016, 10:50 AM
Dollar regains ground on strong U.S. economic reports
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Investing.com - The dollar moved broadly higher against the other major currencies on Friday, boosted by the release of upbeat U.S. economic reports on employment, consumer sentiment and manufacturing activity.

USD/JPY was down 0.17% at 112.38, off lows of 111.80 hit earlier in the session.

The Institute for Supply Management said its index of purchasing managers advanced to 51.8 last month from a reading of 49.5 in February. Analysts had expected the manufacturing PMI to rise to 50.7 in March.

Separately, the University of Michigan said that its consumer sentiment index hit 91.0 in March, up from a previously estimated reading of 90.0 and higher than expectations for 90.5.

The reports came after the U.S. Labor Department said the economy added 215.000 jobs in March, exceeding expectations for an increase of 205.000. The number of jobs created increased by 245.000 in February, whose figure was revised from a previously estimated gain of 242.000.

The U.S. unemployment rate ticked up to 5.0% this month from 4.9% in February. Analysts had expected the unemployment rate to remain unchanged in March.

The report also showed that U.S. average hourly earnings rose 0.3% in March, exceeding expectations for an uptick of 0.2%, after a 0.1% fall the previous month.

Separately, sentiment improved after data earlier showed that manufacturing activity in China swung into expansion territory for the first time since August this month.

China’s official manufacturing purchasing managers’ index rose to 50.2 in March from 49.0 the previous month. Analysts had expected the index to tick up to 49.3 this month.

The Caixin manufacturing PMI rose to 49.7 in March from 48.0 in February, beating expectations for an increase to 48.2.

EUR/USD slipped 0.15% to 1.1363, off highs of 1.1437 hit earlier in the session.

Markit research group reported on Friday that its euro zone manufacturing PMI rose to 51.6 in March from 51.4 the previous month, exceeding expectations for an unchanged reading.

In Germany, the manufacturing PMI rose to 50.7 this month from 50.4 in February, while the French manufacturing PMI remained unchanged at 49.6.

The dollar pushed higher against the pound, with GBP/USD down 1.19% at 1.4190 and was steady against the Swiss franc, with USD/CHF at 0.9612.

Sterling weakened after Markit said its U.K. manufacturing PMI rose to 51.0 in March from 50.8 the previous month, disappointing expectations for an increase to 51.2.

Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.29% at 0.7636, off Thursday’s eight-month peak of 0.7723. NZD/USD retreated 0.71% to 0.6860, after hitting a nine-month high of 0.6966 on Thursday.

USD/CAD advanced 0.72% to trade at 1.3098, after falling to a five-month low of 1.2857 on Thursday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% at 94.91, off the previous session’s five-month low of 94.30.

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