FOREX-Euro off lows as market seeks direction after jobs
* Euro edging off lows after being hit by stop-loss orders
* Mood remains cautious after bleak U.S. jobs numbers
* But Reuters poll shows Aussie, kiwi to be well supported
The euro struggled back from its lowest levels in a week on Friday, after a wave of sell orders compounded losses made on bleak U.S. jobs numbers, and it found support as some investors judged it may have slipped too far.
Dealers said the euro hit stop-loss sell orders around $1.3980, and possible hedge fund selling, in the crossover between late U.S. trade and the start of the Asian day, sending it down to $1.3927 EUR= on electronic trading platform EBS.
The euro and currencies such as the Australian dollar, which have benefited from investor hopes for economic turnaround, had already weakened on Thursday after data showed U.S. employers cut 467,000 jobs in June, far more than expected. [ID:nN01210643]
But analysts said market players then bought the euro back on Friday, helping it off the lows, although it was still weaker than before the employment data and investors were still dismayed the jobs numbers spelled a slower recovery than hoped.
"The risk in the very short term is that maybe we could see some corrective activity. But I don't think we're going into serious risk aversion mode," said Sharada Selvanathan, a currency strategist at BNP Paribas in Hong Kong.
The euro stood at $1.3982 EUR= on EBS, after shedding more than 1 percent on Thursday. It had hit a one-month high above $1.4200 earlier in the week.
The euro dropped as far as 133.58 yen EURJPY=R on Friday, after falling nearly 2 percent on Thursday, but had edged back to 134.18 yen later in Asian trade.
It had also faced selling pressure after comments from European Central Bank President Jean-Claude Trichet the previous day that euro-zone activity would likely remain weak for the rest of the year. The ECB left its benchmark refinancing interest rate at a record low of 1 percent, as expected. [ID:nL2512532]
The dollar was steady against the yen at 95.96 yen JPY=, holding well within a range of 93.50-100 that has limited it since mid-April.