Dollar hits seven-week high vs yen ahead of U.S. jobs data

All 10 main sectors were higher.

"However, investors have already priced in February's strong job growth, so it is less likely that the U.S. Treasury yields jump once more and the dollar rallies unless the data is very strong", added Tanase. Construction jobs increased by 66,000, while manufacturing rose by 32,000.

Analysts polled by Reuters forecast that USA employers likely added 190,000 workers last month, fewer than January's 227,000 and average hourly earnings likely grew 0.3 per cent following a 0.3 per cent fall in January.

The report is expected to show that employment increased by about 195,000 jobs in February after jumping by 227,000 jobs in January.

If the Federal Reserve does hike borrowing costs and send the Australian dollar spiralling lower, a strong employment change number or a decline in the jobless rate could help the currency lick its wounds on Thursday.

"There is nearly no number that would stop them", said Porcelli.

The dollar gained after USA hiring in the private sector surged in February, underscoring the economy's strength and adding to expectations the Fed will raise rates when policy-setters meet on March 15.

The odds of a rate hike during the Fed's meeting next week edged up to 89.7 per cent after the report, according to Reuters data.

The USD may drop a bit on this as the market takeaway is that this could be "goldilocks" data for the Fed and not require any shift in the current assessment of rate guidance.

The thirty-year bond auction drew a high yield of 3.170 percent and a bid-to-cover ratio of 2.34, while the ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.30. Oil was up 0.7 percent on Friday.

It also eased 1.3 percent on a trade-weighed index basis over the week and was trading at 75.94. The Fed then forecast three rate hikes in 2017.

The U.S. Energy Information Administration reported crude stocks rose by 8.21 million barrels, above a forecast 1.9 million.

The euro was up 0.1 per cent at $1.0590, but still down 0.3 per cent for the week even after comments from European Central Bank head Mario Draghi pulled it off its session lows on Thursday. This explains why investors can bet on this floating rate bond ETF in a rising rate environment. The ECB also optimistically raised its growth profile and inflation outlook for the next year which helped to improve investor sentiment.

USA crude rose 0.7 percent to $49.66 a barrel after sliding to $48.59 overnight, the lowest since the end of November.

The euro had largely reverted to treading water in Asia trade after coming off its overnight highs against the dollar.

"He is going to have to acknowledge the better activity data of late".

Shares in South Korea rose 0.3 percent and the won firmed slightly after the country's Constitutional Court upheld parliament's impeachment of President Park Geun-hye over a graft scandal involving big business.

  • Zachary Reyes