* Dollar falls on jobs data; Bullard says rates to stay low
* Aussie rallies on Chinese export data, gold
* Swiss franc turns lower after SNB comments
(Updates prices)
By Jessica Mortimer
LONDON, Jan 11 (Reuters) - The dollar fell broadly on Monday
in the wake of weak U.S. jobs data and comments from a Federal
Reserve official that U.S. interest rates are likely to stay low
for quite some time.
The dollar was also dented by improved investor appetite for
risk after strong Chinese export data boosted optimism the
global economy is recovering. This lifted the euro and
commodity-linked currencies such as the Australian dollar.
Data on Friday showed U.S. employers cut 85,000 jobs last
month, disappointing many who had expected the U.S. economy to
stop losing jobs. [].
The dollar extended falls on Monday after St. Louis Federal
Reserve Bank President James Bullard said rates may remain low
for quite some time. []
"The dollar went sour after the non-farm payrolls data. If
the data didn't meet expectations then it feeds the thought that
there will be a prolonged period of time before the Fed hikes
rates, which is what Bullard said," said Dag Muller, strategist
at SEB in Stockholm.
"Stocks are higher too and oil is bid, which is another
driver of a weaker dollar," he said.
By 1220 GMT, the dollar index <.DXY> was down 0.7 percent at
76.907, having hit 76.859, its weakest since mid-December.
For a link to a discussion on Reuters insider TV on Monday's
fall in the dollar click on http://link.reuters.com/heq52h
The latest data from the Commodity Futures Trading
Commission showed speculators cut U.S. dollar long positions --
bets the currency will appreciate -- in the week to Jan 5, and
traders say that trend is likely to pick up. []
The euro rose 0.8 percent to $1.4530 <EUR=> having hit its
highest in more than three weeks at $1.4546. The next big
resistance is seen around $1.4570 and a break of that would
suggest a gradual recovery towards $1.4800, traders said.
"There is a risk -- if this move higher in euro/dollar
continues -- that more people will exit dollar long positions,"
SEB's Muller said.
The Australian dollar struck a new five-week high versus the
U.S. dollar of $0.9325 <AUD=D4>, buoyed by an unexpected jump in
Chinese export numbers [], a rise in gold prices
and by data showing a jump in Australian job advertisements.
[]
"The global recovery story has received a shot in the arm
with the quick rebound in Chinese exports. The Fed is in no
hurry to tighten, Asia is leading the global recovery so the
dollar is weaker across the board," said Chris Turner, head of
currency strategy at ING in London.
The Norwegian crown was another outperformer, hitting a
one-month high against the dollar <NOK=> and a 15-month high
against the euro <EURNOK=> after above-forecast Norwegian
inflation data strengthened expectations for more rate hikes.
SWISS FRANC DIPS
The Swiss franc turned lower against the euro after Swiss
National Bank chairman Philipp Hildebrand said the central bank
would fight any excessive appreciation of the Swiss franc
against the euro. []
Hildebrand's remarks sparked concern the SNB may intervene
to keep its currency from appreciating after the euro <EURCHF=R>
earlier hit a 10-month low of around 1.4725 francs. By 1220 GMT
it was up 0.1 percent at 1.4767 francs.
For an analysis on the Swiss franc and market concerns about
possible intervention click on []
The dollar's next test is expected to be the U.S. earnings
season which kicks off this week, and U.S. retail sales,
industrial production and inflation data. []
The euro's gains against the dollar may be limited, however,
due to concerns about the sovereign debt of some euro zone
countries.
(Reporting by Jessica Mortimer; Editing by Toby Chopra and
Chris Pizzey)
