FOREX-Dollar edges lower ahead of U.S. jobs data

TOKYO, Aug 7 (Reuters) - The dollar edged lower against a basket of currencies in a subdued market on Friday with investors largely staying on the sidelines ahead of key jobs data in the United States.
The Australian dollar rose briefly after the Reserve Bank of Australia, which raised its growth forecast in a quarterly monetary policy statement, said interest rates could be expected to rise to more normal levels over time should the economy continue to improve. [ID:nSYC000226]
"Among industrial nations Australia has higher interest rates. A view that its economy will benefit from demand from China, whose economy is supported by stimulus measures, is making investors tend to flock to the Aussie," said Ayako Sera, a market strategist at Sumitomo Trust & Banking.
"That said, a full-fledged recovery in the global economy needs a recovery in the United States," she said.
Investors are looking to U.S. July employment figures later on Friday. In a Reuters survey economists forecast 320,000 jobs were lost in July compared with a loss of 467,000 jobs in June.
The unemployment rate is seen at 9.6 percent, which would be the highest since June 1983, compared with 9.5 percent the previous month. [USNFAR=ECI]
Dealers said market sentiment remained upbeat and this would continue unless the employment report held any negative surprises. But the impact of the data could be limited ahead of the Federal Reserve's policy meeting next Tuesday and Wednesday, they said.
Data on Thursday that showed the number of U.S. workers filing for first-time jobless benefits fell sharply in the week to Aug. 1 whetted investors' appetite for more good news on the jobs front. [ID:nN06313199]
The dollar index .DXY, a gauge of its performance against six major currencies, edged down 0.1 percent from late U.S. trade on Thursday to 77.973.
The dollar slipped 0.2 percent to 95.30 yen JPY=.
The Australian dollar fell 0.2 percent to $0.8384 AUD=D4, shedding gains made after the statement by Australia's central bank.