Automating supply & demand trading with proof of concept

AUD/USD resumes its decline, leaving behind two daily gains in a row and approaching the area of multi-day lows in the 0.7040-0.7030 band ahead of the opening bell in Asia. Moving forward, the Aussie is expected to remain under scrutiny in light of the publication of the jobs report in Australia.
 

USD/JPY bounced on Wednesday after the Japanese Yen's recent rally finally ran out of steam, which has been its best weekly performance since November 2024. Despite a growth miss in Japanese Gross Domestic Product figures earlier this week, Bank of Japan rate hike expectations remain firmly in place; former board member Adachi said an April move is likely, and the International Monetary Fund reiterated that Japan should continue normalizing policy.

Gold price holds positive ground near $4,985 during the early Asian session on Thursday. The precious metal recovers amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims,  Pending Home Sales data, and the Fedspeak later on Thursday. 

The Australian monthly employment report is scheduled for release on Thursday at 00:30 GMT, and market participants anticipate a modest increase in jobs in January. The Australian Bureau of Statistics is expected to announce that the country added 20K new jobs in the month, while the Unemployment Rate is forecast at 4.2%, up from the 4.1% posted in December.

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

European Central Bank (ECB) President Christine Lagarde may step down from her job earlier than her planned retirement in October 2027, according to a report by the Financial Times.