U.S. Dollar Gains Before U.S. Employment Reports

The U.S. dollar gained versus major peers, precious metals dropped and Asian stocks traded near a six-year high before jobs reports and a euro-area monetary-policy decision. Australia’s currency slid as the country’s central bank governor said it was overvalued.

The Bloomberg Dollar Spot Index added 0.1 percent by 7:11 a.m. in London. Futures on the Euro Stoxx 50 Index and Standard & Poor’s 500 Index were little changed, while the MSCI Asia Pacific Index slipped 0.1 percent. Platinum retreated from a nine-month high and gold slid 0.3 percent. The Aussie slid 0.7 percent, trading at 93.78 U.S., cents after Reserve Bank of Australia Governor Glenn Stevens said investors are underestimating the chance of currency losses. Oil in New York fell a sixth day, its longest slump since May 2012.

The monthly payrolls report comes after ADP Research Institute data yesterday showed U.S. employment rose in June by the most since 2012, with more workers hired than economists projected. The European Central Bank meets today after enacting unprecedented stimulus last month, while in Asia, data on services industries is due. The Aussie is more than just a few cents overvalued and the risk of a “significant fall” is being underestimated, Stevens said in a speech today.

Bloomberg

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