Dollar recovering as jobs disappointment fades; RBA next up

The common currency last stood at $1.0936, recoiling from Monday's $1.1036 peak. The euro has repeatedly failed to hold above $1.10 in the past few weeks, suggesting there is plenty of selling interest above that level.

Against the yen, the greenback climbed to 119.50, off a low of 118.71 set on Friday after the disappointing job growth figures sent dollar bulls packing.

A top Federal Reserve official said the timing of the first interest rate hike in nearly a decade is unclear.

New York Fed President William Dudley said for now policymakers must watch that the U.S. economy's recent weakness does not signal a more substantial slowdown.

Yet, an industry report on the U.S. services sector showed encouraging strength in exports and employment in March, holding out hope that the economy can quickly recover from the first-quarter slowdown.

"The USD appears to be regaining composure in the aftermath of last week's soft jobs data with some help from U.S. yields, which rebounded from Friday's lows," analysts at BNP Paribas wrote in a note to clients.

"That said, the full market impact is likely to transpire once European markets return on Tuesday."

Many financial centers around the world were closed from Friday for the Easter holidays. European markets reopen later on Tuesday.

The U.S. dollar also clawed back some ground against commodity currencies, sending its Australian counterpart to $0.7593, near a six-year trough of $0.7534 set on Thursday.

The Aussie was also pressured against its New Zealand peer, having fallen below parity for the first time in holiday-thinned trade on Monday. It has since drifted back to NZ$1.0068, off the low of NZ$0.9980.

Investors have been selling the Aussie amid growing expectations that the Reserve Bank of Australia will cut interest rates later on Tuesday.