Altcoins offer upside scope

AUD/USD is facing fresh selling pressure, easing below 0.6700 in the Asian session on Friday. after the release of mixed inflation figures from China. The focus now remains on the US NFP report, which will influence the Fed's rate-cut path and drive the US Dollar, eventually impactintg the major. 

USD/JPY is hovering near the top end of its weekly range, just above 157.00 early Friday. The pair cheers renewed US Dollar demand ahead of the US Nonfarm Payrolls data. Meanwhile, an unexpected rise in Japan's Household Spending keeps the door open for further BoJ policy tightening, supporting the Japanese Yen and keeping the pair's upside limited. 

Gold struggles to capitalize on the previous day's goodish move up from the vicinity of the $4,400 mark and attracts some sellers while defending $4,450 in the Asian session on Friday. The critical US employment details will offer more cues about the Fed's rate-cut path, which, in turn, will influence the US Dollar price dynamics and provide a fresh impetus to the non-yielding bullion. 

Yesterday’s data put the kybosh on the idea the Fed needs to cut rates fairly urgently to protect the labor market. The jobs component of the ISM services index was nicely over 50, and that rising JOLTS voluntary quits rate also points to no real heartache in labor.

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

The US Dollar (USD) posted decent gains, enough to maintain its optimism unchanged so far this year. Meanwhile, market participants remained cautious ahead of the release of the critical US labour market report at the end of the week.