Investing.com — Most Asian currencies were little moved on Friday ahead of key U.S. payroll data due later in the day, although growing expectations of interest rate cuts pushed the dollar toward a weekly loss.
Sentiment towards risk-driven assets improved this week after interest rate cuts in the and .
But mixed economic signals from some major Asian economies kept capital flows into regional markets subdued, as did expectations of more signals on US interest rates.
Chinese Yuan Flat After Mixed Trade Data
The Chinese yuan pair moved little on Friday, holding near a six-month high following mediocre trading data from the country.
China’s economy grew stronger than expected in May, supported by strong industrial production and foreign demand. As a result, the country also recorded a larger than expected surplus.
But China’s grew much weaker than expected, suggesting local demand remained subdued as the broader economy struggled with an uneven economic recovery.
Sentiment towards China had deteriorated in recent weeks due to growing doubts about an economic recovery in the country and more stimulus measures from Beijing.
The dollar number of nurses is dropping weekly, non-farm payrolls are waiting
The and both were steady in Asian trading on Friday and are expected to lose about 0.5% each this week.
The dollar has been hit by a series of weak economic data, especially on the labor sector, raising expectations that the Federal Reserve will be increasingly confident about cutting rates this year.
Traders were seen placing their bets on a .
The weak labor market data also preceded data due later on Friday, which is expected to provide more definitive guidance on the labor market and interest rates.
The Fed also meets next week and is widely expected to keep rates steady.
Indian rupee tests record lows, RBI waited
The Indian rupee pair moved little on Friday, remaining near record highs, with a Reserve Bank of India meeting scheduled for later in the day.
The RBI is widely expected to remain steady, while signals on inflation and the economy will be closely monitored.
The rupee weakened significantly this week after 2024 general election results showed the ruling BJP-led alliance winning a much smaller majority than expected.
The broader Asian currencies moved within a tight range. The Japanese yen pair has been hovering around 156 yen, with a clear focus on , with the central bank expected to taper its bond purchases and thus tighten policy.
The Australian dollar pair rose 0.1%, while the South Korean won pair rose 0.3%.
The Singapore dollar pair moved little.
