“The figures would have to be significantly lower to dampen USA dollar strength”.
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They said the weakness of the won against the USA dollar prompted the local central bank to enter the trading floor, buying into the us dollar and sending the Taiwan dollar lower.
USA stocks closed modestly lower after wavering in a tight range Wednesday, as investors assessed U.S. Federal Reserve Chair Janet Yellen’s comments about rate hikes.
The greenback climbed 0.9% to US$1.0866 per euro as of 5 pm, touching US$1.0844, its strongest since July 21.
In addition to the recent disappointing job gains, the economy grew just 1.5% at an annual rate in the third quarter. Factors attributed to the decline are the following: a drop in oil prices; profit taking after two days of gains; and, two federal reserve officials saying the current growth of the US economy is sufficient to warrant a rate hike in December.
“Our statement indicates that December would be a live possibility” for an increase in the federal funds rate, she said.
She said the decision on hiking interest rates in December will depend on the Fed’s policy arm’s assessment of the economic outlook at that time and “that assessment will be informed by all of the data that we received between now and then”. A rate hike, regardless of its timing, will be a significant change in the Fed’s policy stance, which has kept interests at record lows since the global financial crisis struck in 2008.
The ADP National Employment Report showed US private employers maintained a steady pace of hiring in October, while data from the Institute for Supply Management showed a jump in new orders buoyed activity in the services sector.
The reports come ahead of nonfarm payrolls data on Friday, the most widely watched US economic indicator.
It will get another update on the strength of the economy when non-farm payrolls for October are reported on Friday in Washington, which are expected to show the world’s biggest economy added 182,000 workers that month.
United States crude pared a few losses, increasing about 0.3 percent to $45.32 a barrel, but was still on track to lose 2.7 percent for the week.
Oilfield-servicing company Baker Hughes fell $2.90, or 5.3 percent, to $51.56. Other media stocks, such as Walt Disney Co (DIS.N), also fell. “The market now prices a 58 per cent chance of a December hike”.
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“The $1,100 handle is the key figure on the downside whilst a spike back above $1,110 could signal a technical turnaround or at least a consolidation”, said MKS Group trader James Gardiner.
