* Dollar struggles to pull away from one-week lows vs
* Fed minutes indicate bond-buying will end in October
* Aussie slips on jobs data and disappointing Chinese
By Lisa Twaronite and Ian Chua
TOKYO/SYDNEY, July 10 The dollar traded around
one-week lows against a basket of major currencies on Thursday,
coming under pressure after minutes of the Federal Reserve's
June meeting gave no clear indication about the timing of any
interest rate rise.
The Australian dollar, meanwhile, slipped after a rise in
the country's jobless rate raised concern about its stalled
economy and stoked expectations that interest rates may remain
on hold for months to come.
The Fed minutes confirmed that the U.S. central bank's
monthly bond purchases would probably end in October and showed
that policymakers debated the complexities of unwinding a
stimulus program that has flooded the financial system with over
The uncertain outlook for the timing of the Fed's move has
kept major currencies in relatively tight ranges in recent
"The Fed is driving the station wagon right now, with
everybody in the back. We're expecting rates to go higher, and
there are side bets on when that might happen," said Bart
Wakabayashi, head of forex at State Street Global Markets in
"We're all waiting for something to kick-start this, but I
think we all know it's the Fed," he said.
The dollar index was flat in Asian trade at 79.998
after dropping to a one-week low of 79.976 early in the session.
Benefiting from renewed softness in the greenback, the euro
was steady on the day at $1.3646 after rising to a
one-week high of $1.3649 when the Fed minutes proved more dovish
"The market had likely positioned for a hawkish tone to the
minutes, given the upward revisions to Fed rate forecasts, as
well as the fact that these tend to reflect a broader set of
FOMC members, both non-voters and voters, than the post-meeting
statement," analysts at Barclays wrote in a note to clients.
Against the yen, the dollar slipped about 0.1 percent to
101.54 yen, not far from a one-week low of 101.44 yen
Undermining the yen, data released early in the session
showed Japanese machinery orders suffered their worst monthly
fall on record in May, defying expectations of a bounce.
The euro edged down about 0.1 percent to 138.57 yen
but remained above Wednesday's low of 138.14 yen.
European Central Bank President Mario Draghi has reiterated
the ECB is ready to use "unconventional instruments" if needed
to boost growth, but he devoted most of a speech this week to
press for closer European integration to deliver growth and
Sterling was steady at $1.7152, within easy reach
of this month's six-year high of $1.7180. The Canadian dollar
edged up to C$1.0655 per USD, not far from last week's
six-month high of C$1.0620.
The Australian dollar slipped about 0.1 percent on the day
to $0.9399 after figures showed unemployment rose to
6.0 percent last month as more people went looking for work.
That reversed a jump earlier in the session to a high of
$0.9453 after the same data series showed a bigger-than-expected
increase in employment last month.
The Aussie's drop was reminiscent of its move last Thursday,
when it tumbled to $0.9327 from $0.9443 after Reserve Bank of
Australia Governor Glenn Stevens warned that investors were
underestimating the risk of a sharp correction in the currency.
Putting further pressure on the Australian unit, trade data
from China, the country's largest trading partner, showed
exports grew less than expected in June.
The New Zealand dollar rose as high as $0.8839
before trading steady at $0.8824. A break above $0.8842 would
return the kiwi to territory last visited in 1985. Its
trade-weighted index is already at a post-float high.
(Editing by Richard Pullin and Alan Raybould)