Forex Today: USD extends reversal, AUD drops after jobs; ECB minutes & US data eyed


After yesterday's reversal from one-month high, sluggish US Dollar performance had been a key theme during Asian session on Thursday despite of Wednesday's strong US economic reports, record high levels for the US equity indices and rising treasury bond yields. 

Lack of sustained follow through buying interest in wake of slightly cautious comments from the Fed Chair Janet Yellen, during the second day of her testimony before the House Financial Services Committee on Wednesday, seems to be primary drivers of the greenback's retracement on Thursday.

Meanwhile, the Australian Dollar reversed mixed jobs data led early gains as further details revealed that jobs growth was solely driven by part-time jobs, with a contraction in full-time jobs. 

Against the backdrop of growing expectations for an eventual Fed rate-hike action, sooner-rather-than-later, market participants on Thursday would look forward to the US economic data featuring the release of housing starts, building permits, weekly jobless claims and Philly Fed manufacturing index. Meanwhile, ECB is scheduled to release the monetary policy meeting minutes during European trading session.

Main topics in Asia

Japanese MoF: didn’t discuss FX with US Treasury Secretary Mnuchin

Japanese Ministry of Finance (MoF) informed markets that a phone call between US Treasury Secretary Mnuchin and Japanese Finance Minister did not include a discussion on the exchange rate.

Fed’s Dudley calls stock market rally unusual

Fed’s Dudley calls the stock market rally unusual given the enormous rise in the policy uncertainty. Dudley sees Fed raising rates a little further in months ahead, as the inflation is seen moving towards Fed’s 2% objective.

EUR/USD jumps above 1.06 as the Treasury yields drop

The EUR/USD pair jumped to a session high of 1.0624 this Thursday morning on the back of a drop in the treasury yields.

Australian Jan employment headline upbeat, full-time jobs suffer sharp fall

Australia employment change s.a. came in at +13.5k in January, above forecasts of +10k and prior of 13.5k, with the unemployment rate s.a. at 5.7% vs forecasts of 5.8% and 5.8% last.

Key focus for the day ahead

GBP/USD - Rejected again at 1-hour 50-MA, is the pair overpriced?

GBP/USD fails again to take out the 1-hour 50-MA, marking the third failure at the moving average in the last twelve hours.

US and UK key data points, divergence of inflationary environment - ANZ

Analysts at ANZ noted that US Jan CPI beat expectations overnight at 2.5% y/y - its highest increase since March 2012.

S&P 500 - break of 2340-2346 would add weight to our bullish view – Natixis

Natixis Technical Research note sees a potential for a rally to 2360-2367 post a break above 2340-2346 levels.

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD: Door open to extra losses

AUD/USD: Door open to extra losses

AUD/USD remained on the back foot on Tuesday, down for the third day in a row and retreating to five-day lows near the key 0.6500 support, always amid the resurgence of the strong demand for the US Dollar, this time underpinned by higher US inflation readings in June.

EUR/USD: Further weakness could extend to 1.1460

EUR/USD: Further weakness could extend to 1.1460

On Tuesday, the EUR/USD resumed its negative trend by falling below the crucial support at 1.1600 the figure and reaching fresh three-week lows against the background of a stronger Greenback. So far in July, the pair has only closed higher on two occasions.

Gold's selling pressure picks up pace, focus on $3,320

Gold's selling pressure picks up pace, focus on $3,320

Gold prices now lose the grip and prompt the precious metal to retreat to daily troughs near the $3,320 mark per troy ounce. The increasing selling pressure around the yellow metal comes in response to a stronger US Dollar, rising US yields across the curcve, and the idea that the Fed might remain cautious for longer.

Ripple Prediction: XRP eyes breakout past $3.00 amid 'Crypto Week'

Ripple Prediction: XRP eyes breakout past $3.00 amid 'Crypto Week'

Ripple (XRP) drops below $3.00 on Tuesday, exchanging hands at $2.87 during the American session. The volatility follows XRP's rally, which tagged a weekly high of $3.03 the previous day, reflecting investors' desire to de-risk in the broader cryptocurrency market.

China’s first-half growth remains on track, though activity data signals caution

China’s first-half growth remains on track, though activity data signals caution

China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.

Best Brokers for EUR/USD Trading

Best Brokers for EUR/USD Trading

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025