Investing.com - The Aussie bumped higher in Asia on Thursday after jobs data that suggested better than expected employment growth, while comments on U.S. rates by a key Fed policy maker failed to send the dollar higher.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.18% to 100.90. USD/JPY changed hands at 113.78, down 0.32%, while AUD/USD rose 0.09% to 0.7717.
In Australia, data showed 13,500 jobs added in January, more than the 10,000 expected with the unemployment rate down to 5.7% from an expected and previous 5.8% rate.
The Federal Reserve aims to raise U.S. interest rates soon, New York Fed President William Dudley said Wednesday, if, as expected, fiscal policies provide stimulus. "We expect to gradually remove further monetary policy accommodation and snug up interest rates a little bit further in the months ahead," Dudley said.
Overnight, the U.S. dollar traded close to flat against major currencies on Wednesday, despite stronger than expected U.S. economic data as markets pause amid congressional testimony from Federal Reserve Chair Janet Yellen.
The dollar index was up in early trade Wednesday, after U.S. retail sales and inflation data beat expectations. In the 12 months through January, headline inflation, as measured by the Consumer Price Index (CPI) rose 2.5% beating expectations of 2.1%. Large gains in energy prices, especially crude oil prices over recent months, were one of the main components, which contributed to a spike in inflation.
However, the dollar pared gains almost immediately, as market focus shifted to a second day of congressional testimony from Fed chief Janet Yellen, who briefly mentioned that the U.S. economy was “close to achieving Fed mandates”.
Yellen’s early comments were seen as favourable for a March rate hike - Investing.com's Fed Rate Monitor Tool showed that 27% of traders expect the Fed to raise interest rates at its next meeting in March.