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AUD/USD is losing ground toward 0.7000 in the Asian session on Thursday, following the release of the Australian August jobs report, which showed that the Unemployment Rate rose to 4.6% versus 4.5% expected, while Employment Change beat estimates, arriving at 39.5K. Traders also remain unnerved ahead of the critical Trump-Xi meeting.
USD/JPY sits near a three-week high, around the 158.35 zone during the Asian session on Thursday. The BoJ's dovish rate hike last week undermined the Japanese Yen, while the US Dollar preserves overnight gains to a two-month high amid hawkish Fed bets and elevated US bond yields. This favors bulls, though intervention fears could cap the upside.
Gold struggles below $4,300 during the Asian session on Thursday and seems vulnerable amid a bearish fundamental backdrop. US bond yields rallied to fresh multi-year highs amid rising Fed rate-hike bets, helping the US Dollar preserve Wednesday’s strong gains to a nearly two-month high and undermining the non-yielding bullion. Bears, however, seem hesitant ahead of the Trump-Xi meeting.
Rising oil prices and higher yields have thrown the equity rally off track. After the risk-on start to the week renewed gains for oil prices and yields have weighed on indices.
The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.
