- Falling copper prices weigh on commodity-sensitive AUD on Friday.
- US Dollar Index climbs to fresh multi-month highs above 98.60.
- Nonfarm Payrolls (NFP) in the US is expected to rise to 160K in January.
The AUD/USD pair extended its slide after breaking below the 0.6700 handle and touched its lowest level since March of 2009 at 0.6672 before recovering modestly. As of writing, the pair was trading at 0.6685, erasing 0.68% on a daily basis.
Falling copper prices amid concerns over the negative impact of the coronavirus outbreak on China's metal demand hurt the commodity-sensitive AUD. "Three-month copper on the London Metal Exchange (LME) fell 0.4% to $5,713.50 a tonne," Reuters reported. "The most-traded copper contract on the Shanghai Futures Exchange closed down 0.6% at 45,670 yuan ($6,545.89) a tonne."
Furthermore, the data published by the Australian Bureau of Statistics revealed that Retail Sales in December declined by 0.5% on a monthly basis in December to further weigh on the AUD.
DXY extends rally on Friday
On the other hand, the sour market sentiment helps the relatively safer USD continue to find demand on Friday with the US Dollar Index (DXY) rising to its best level since October at 98.62. At the moment, the index is up 0.12% on the day at 98.59.
In the early trading hours of the American session, the US Bureau of Labor Statistics will release its closely-watched Nonfarm Payrolls (NFP) report. Analysts see the NFP rising to 160K in January from 145K in December.
Previewing the data, "the tight labor market should continue to translate into modest wage growth," said Wells Fargo analysts. "We expect average hourly earnings rose 0.3% in January, which would suggest a modest lift in the year-ago rate to 3.0%.”
US NFP Preview: 6 Major Banks expectations for January payrolls report.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.