3 May 2007, 12:44  Dollar flat ahead of US data

The US dollar was mostly flat against the yen and euro in afternoon trade here, with trade flows sapped by market holidays in Japan and China, dealers said. Dealers said there was little direct trading interest in dollar-yen, and the pair's price action was generally influenced by cross yen trades. The dollar started Asian trading today at 120.15 yen after moving within the 119.98-120.28 yen range in New York overnight, and inched up as the market digested strong US factory orders data, although a smaller-than-expected 64,000 rise in ADP private sector payrolls estimate dampened any appetite for a strong rally, dealers said. With Japan and China markets remaining closed through the rest of the week, dealers expect even lighter interest tomorrow, especially with players viewing the release of US non-farm payrolls data for April as a major event risk. The ADP report last night has raised the specter that the April payrolls reading will come in below the consensus and Market News International's median forecast of a 100,000 increase. Later tonight, the US ISM non-manufacturing index is due out, with MNI expecting the index to rise to 53.5 in April from the 52.4 seen in March. Estimates range from 50.9 to 55.0.

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