FOREX-Dollar regains footing as Fed cut shakeout fades

* Dollar claws back ground vs euro
* Aussie, kiwi halt recent rises
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Westbrook
SINGAPORE, March 5 (Reuters) - The dollar found its footing
on Thursday as upbeat jobs data helped it recoup a little of its
slide against the euro and it steadied on the yen after the U.S.
Federal Reserve's surprise rate cut.
The safe-haven yen also handed back a fraction of recent
gains, as the resurgence of moderate Joe Biden in the Democratic
Party primaries lifted investors' risk appetite. Strong U.S. labour-market data overnight, with February
private payrolls beating expectations, helped the greenback 0.3%
higher on the euro EUR= to $1.137 per euro. A dollar last bought 107.61 yen JPY= . An emergency 50
basis point interest rate cut by the Fed on Tuesday had sent the
dollar to a five-month low of 106.84 yen. MKTS/GLOB
"Irrespective of Fed rate cuts, in our view demand for the
dollar is likely to be firm as long as the coronavirus crisis
continues and fears of recession build in various parts of the
global economy," said Jane Foley, senior FX strategist at
Rabobank in London.
"We now anticipate that the eurozone will experience
recession this year, while the risks that sluggish growth in
Australia will turn into recession have also been heightened."
The Australian and New Zealand dollars, heavily sold as the
virus' outbreak widened, halted a nascent advance on the
greenback. AUD/
The Aussie AUD=D3 , which had been the best performing G10
currency over the past 24 hours and has lifted nearly 3% from an
11-year low hit last week, steadied at $0.6621. The kiwi
NZD=D3 , which has climbed almost 2% from a Monday trough, sat
at $0.6291.
Australia's Treasury Department said on Thursday that it is
not forecasting a recession as yet, but that the coronavirus is
expected to wipe half a percentage point from first-quarter
growth. "People are looking at Aussie dollar positions and whether
or not they want to be long," said Chris Weston, head of
research at Melbourne brokerage Pepperstone.
"If you have a look at the outlook, the talk of the town now
is what does quantitative easing look like in Australia, when is
it likely to be deployed and how much of that is priced in."
Central bank action is also driving prices elsewhere.
The Canadian dollar was slightly weaker against its U.S.
counterpart after the Bank of Canada delivered its biggest
interest rate cut in more than 10 years - though since the move
mirrored the Fed, the reaction was muted. The loonie CAD=D3 last traded at 1.3390 per dollar.
The British pound rose against the dollar and the euro after
the incoming Bank of England governor said he would wait for
more clarity about the virus before moving interest rates,
rather than rushing to an emergency cut. The pound last bought $1.2871 GBP= and traded at 86.55
pence per euro EURGBP= .