Sluggish wage growth pushes back rate hike expectations

The dollar was weighed by a weaker-than-expected wage growth at the start of the week. The soft reading reinforced expectations the Federal Reserve will refrain from raising interest rates next month.

The dollar index, slipped 0.2 percent to 99.63, moving back toward last Thursday's low of 99.233, which was its weakest since mid-November. It has since bounced back and is now trading above 100.

USD/JPY is up 0.2 percent against from Friday's late North American levels. It had fell to 112.20 at the beginning of the week, retreating toward last week's late-November low of 112.05.

Despite the headline figure of Friday's nonfarm payrolls report for January showed a greater-than-expected rise in job growth, the jobless rate edged up and wage growth was disappointing. That implied inflation would not attain a pace that would prompt the U.S. central bank to raise interest rates soon.

EUR/USD slipped to 1.0733 after hitting 1.0788 early on Monday, edging towards Friday's session low of $1.0711.

The Australian dollar slipped as retail sales for December came in below expectations.

The Aussie is down 0.4 percent to 0.7651, moving away from last week's three-month high of 0.7696.

The Reserve Bank of Australia (RBA) is widely expected to hold policy steady at its rate-setting meeting on Tuesday, after it cut rates twice last year.

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