Forex Today: Caution grows ahead of US employment figures
What you need to know on Wednesday, October 6:
The greenback weakened modestly against most of its rivals, although currency pairs remained within familiar levels. US data was mixed, as the Markit Services PMI resulted at 54.9 in September, better than the 54.4 expected. More relevantly, the official US ISM Services PMI improved to 61.9 in September, much better than the 60 expected. However, the August Goods and Services Trade Balance, which posted a wider than anticipated deficit of $73.3 billion.
The focus now shifts to US employment-related data, starting on Wednesday with the ADP survey on private job creation. US Federal Reserve Chair Powell said one good employment report would convince him about tightening the monetary policy. The country will publish the Nonfarm Payrolls report on Friday.
Commodity-linked currency reversed early losses and posted modest gains as European and American equities advanced. The AUD/USD pair trades around 0.7290, while USD/CAD hovers around 1.2580.
USD/JPY advanced, currently at 111.50, as US Treasury yields edged higher. The yield on the 10-year Treasury note peaked t 1.54% and currently stands at 1.53%.
Gold shed some ground as investors moved away from safe-haven assets. The bright metal settled at around $1,760 a troy ounce. Crude oil prices kept advancing, with WTI closing above $79.00 a barrel.
The Reserve Bank of New Zealand will announce its monetary policy decision on Wednesday.
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
