* ADP private sector jobs data slightly lower than expected
* Weak U.S. manufacturing data still haunts FX market
* Dollar falls to one-week low vs yen
* Aussie slides to decade low in wake of RBA rate cut
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Oct 2 (Reuters) - The dollar on Wednesday dropped
to a one-week low against the yen and declined for a second
straight session versus the euro, amid worries about global
growth following data released a day earlier showing a sharp
decline in U.S. manufacturing activity.
The greenback tracked falls in U.S. equities and Treasury
yields.
Wednesday's U.S. payrolls report on the private sector
showed a lower-than-expected figure for September, although some
market participants were relieved the data was not as bad as
many initially feared, especially in the wake of the poor U.S.
manufacturing numbers.
Data from the U.S. payrolls processor ADP showed the U.S.
private sector jobs added 135,000 jobs last month, lower than
the 140,000 forecast, suggesting trade tensions, which have
pressured manufacturing, could be spilling over to the labor
market. The dollar initially trimmed losses against the yen and euro
after the U.S. jobs data but further weakened as the trading day
went on.
"The market is overly sensitive to data misses," said
Alfonso Esparza, senior market analyst, at FX broker OANDA in
Toronto.
"Employment has been one of the strongest pillars of the
U.S. economic recovery and it has held out well against the
backdrop of the U.S.-China trade war. But we might see jobs
wobble a little bit given that we're starting to see weakness in
manufacturing in the United States much like in Europe, Japan,
China."
Esparza said there is a lot of concern about what Friday's
U.S. non-farm payrolls report will look like, though the numbers
should still be solid despite the manufacturing misstep.
U.S. manufacturing contracted at the fastest pace in more
than a decade in September, data showed on Tuesday, making the
United States the latest country to suffer a manufacturing
downturn amid the trade war between Washington and Beijing.
Many analysts say, however, the dollar's higher yield and
the relative strength of the U.S. economy should make this
setback temporary.
In afternoon trading, the dollar fell 0.6% against the yen
to 107.39 yen JPY= , reflecting investor demand for safer
assets. The U.S. currency earlier fell to a one-week low of
107.06 yen.
The euro rose 0.3% against the dollar to $1.0959 EUR= ,
above Tuesday's two-year low of $1.0877.
The dollar index, which measures the greenback's value
against a basket of other currencies, was down 0.1% at 99.014
.DXY after reaching 99.667 on Tuesday, a 29-month peak hit
just before the manufacturing data was released.
Elsewhere, the Australian dollar was flat at US$0.6700
AUD=D3 , after trading mostly lower. The Aussie dollar earlier
fell to a 10-year low after the Reserve Bank of Australia cut
rates to a record low the day before. The pound was also little changed against the dollar at
$1.2305 GBP=D3 as the greenback's losses extended. Sterling's
outlook, however, remained uncertain amid doubts over whether
Prime Minister Boris Johnson's final Brexit offer to the
European Union would be well-received by Brussels.
========================================================
Currency bid prices at 2:49PM (1849 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0956 $1.0930 +0.24% -4.47% +1.0963 +1.0905
Dollar/Yen JPY= 107.2000 107.7400 -0.50% -2.78% +107.8900 +107.0600
Euro/Yen EURJPY= 117.44 117.77 -0.28% -6.96% +118.0000 +117.3300
Dollar/Swiss CHF= 0.9974 0.9933 +0.41% +1.63% +1.0025 +0.9922
Sterling/Dollar GBP= 1.2301 1.2301 +0.00% -3.57% +1.2323 +1.2228
Dollar/Canadian CAD= 1.3314 1.3218 +0.73% -2.37% +1.3318 +1.3205
Australian/Doll AUD= 0.6705 0.6702 +0.04% -4.88% +0.6718 +0.6672
Euro/Swiss EURCHF= 1.0930 1.0857 +0.67% -2.88% +1.0953 +1.0854
Euro/Sterling EURGBP= 0.8905 0.8884 +0.24% -0.88% +0.8924 +0.8883
NZ NZD= 0.6270 0.6244 +0.42% -6.65% +0.6271 +0.6220
Dollar/Dollar
Dollar/Norway NOK= 9.1360 9.1236 +0.14% +5.76% +9.1610 +9.1159
Euro/Norway EURNOK= 10.0110 9.9752 +0.36% +1.06% +10.0250 +9.9684
Dollar/Sweden SEK= 9.8638 9.8768 +0.08% +10.04% +9.9205 +9.8573
Euro/Sweden EURSEK= 10.8088 10.8006 +0.08% +5.31% +10.8400 +10.7807
Euro vs U.S. dollar https://tmsnrt.rs/2opJuzd
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