AUD/USD breaks above 0.6800 on strong jobs data – BBH

FXStreet Insights Team FXStreet

The Australian Dollar (AUD) is outperforming, with AUD/USD breaking above 0.6800 after a robust December jobs report showing 65.2k positions added and the unemployment rate falling to 4.1%, BBH FX analysts report, BBH FX analysts report.

RBA rate-hike bets surge ahead of February meeting

"AUD is outperforming, while AUD/USD broke above psychological resistance at 0.6800. Australia’s December jobs report was strong. The economy added more jobs than expected 65.2k (consensus: 27k) vs. -28.7k in November. Full-time employment surged 54.8k, partly reversing November’s loss, while part-time employment increased 10.4k after rising 36.6k in November."

"The unemployment rate unexpectedly dropped 0.2pts to 4.1% (consensus: 4.3%), which is well below the RBA’s year-end projection of 4.4%. In parallel, the tick up in the participation rate (0.1pts to 66.7%) and the rise in hours worked (0.4% m/m) point to a modest tightening in labor market conditions."

"Bets for a 25bps RBA rate hike to 3.85% at the upcoming February 3 meeting more than doubled to 60%. If next week’s December CPI data shows trimmed mean inflation above the RBA’s 3.2% y/y projection, that could seal the deal for a February rate increase and turbocharge AUD."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.