Dollar edges up as market looks to CPI data; Aussie, kiwi rise on China

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NEW YORK, Dec 9 - The dollar was up slightly in skittish trading on Monday as investors awaited U.S. inflation data later this week, while the Australian and New Zealand dollars rallied after China pledged an"appropriately loose" monetary policy next year.

Data on Friday showed U.S. job growth surged in November, but a rise in the unemployment rate to 4.2% pointed to an easing labor market that should allow the Fed to cut interest rates again this month. The two currencies often serve as a proxy for the Chinese yuan , which strengthened in the offshore market to leave the dollar down 0.26% at 7.2670.China will adopt an"appropriately loose" monetary policy next year as part of steps to support economic growth, and will implement a more proactive fiscal policy and step up"unconventional" counter-cyclical adjustments, state media reported on Monday, citing a Politburo meeting.

Mizuho Bank strategist Vishnu Varathan pointed to a host of geopolitical developments, such as the weekend fall of Syrian President Bashar al-Assad and trades related to macroeconomic factors and President-elect Donald Trump, as providing markets further impetus to stay long dollars.Last week's headliner, bitcoin , which hit six-figures for the first time at a record $103,649, was last at $97,009.

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