The US Dollar is looking to Fed-speak for a lifeline after two days of losses. The Australian Dollar soared after an unexpectedly strong set of March jobs figures.
Talking Points:
Aussie Dollar Soars as Jobs Data Tops Forecasts, Denting RBA Rate Cut Bets
US Dollar Looks to Fed Commentary for a Lifeline After Two Days of Losses
See Economic Releases Directly on Your Charts with the DailyFX News App
The Australian Dollar outperformed in otherwise quiet overnight trade, rising as much as 1.1 percent on average against its leading counterparts. The move followed sharply better than expected set of labor market figures. The economy added 37,700 jobs in March, topping estimates for a meager 15,000 increase, while the unemployment rate unexpectedly dropped to a three-month low of 6.1 percent. The Aussie’s move higher tracked a parallel surge in front-end bond yields, suggesting traders interpreted the upbeat improvement on the employment front as reducing the scope for on-coming RBA interest rate cuts.
A relatively quiet European data docket will likely see investors looking ahead to US news-flow for direction cues. “Fed-speak”is in focus, with comments from Vice Chair Stanley Fischer and Atlanta Fed President Dennis Lockhart of particular note considering both are currently members of the FOMC rate-setting committee. Cleveland Fed President Loretta Mester and Boston Fed President Eric Rosengren are likewise due to speak.
Needless to say, the timing of the first post-QE rate hike is the central question on the minds of investors. Rhetoric pointing to the lingering possibility of a mid-year move, particularly from the typically dovish Mr Lockhart, may breathe new life into the US Dollar and send the currency higher after two days of losses. Alternatively, a more timid tone points to compound selling pressure facing the greenback.
FXCM, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. FXCM, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.