Forex Today: Market players eye Australia’s jobs data, ahead of US PPI and jobless claims

The US Dollar surges as inflation data in the United States holds steady, with traders anticipating a quarter-point interest rate cut by the Federal Reserve next week. Investors await upcoming US data as they remain doubtful about the Fed’s upcoming monetary policy decision.

Here’s what you need to know on Thursday, December 12:

The US Dollar Index (DXY), which tracks the performance of a basket of six peers against the buck, rallies past 106.50, up 0.28%, underpinned by high US Treasury bond yields. The US Producer Price Index (PPI), followed by the release of Initial Jobless Claims, would be the “latest” volatility triggers ahead of the Fed’s December monetary policy meeting.

EUR/USD downtrend extended for the second consecutive day, posting weekly losses of almost 0.705, yet it remains hoovering around 1.0500 ahead of the European Central Bank (ECB) meeting on December 12.

GBP/USD trimmed its earlier losses amid a scarce economic docket, yet it remains afloat near 1.2750, with the Gross Domestic Product (GDP), the Goods Trade Balance and Industrial Production set to be known on December 13.

USD/JPY advanced steadily, bolstered by the jump in US Treasury yields. It cleared the 200-day SMA of 152.01 on Bloomberg sources indicating that the Bank of Japan might increase rates sooner rather than later ahead of next week’s BoJ policy meeting. The pair peaked at around 152.80.

AUD/USD found its foot during the session after plunging to a new year-to-date (YTD) low of 0.6336, following Tuesday’s RBA’s dovish hold. Market players’ focus shifted toward the Australian labor market data release on December 12.

USD/CAD failed to clear 1.4200 as the Bank of Canada delivered a “hawkish” cut, and Governor Tiff Macklem adopted a more gradual approach to upcoming monetary policy meetings. The pair is set to end the day with losses of over 0.14%.

Oil prices rallied sharply, with WTI soaring almost 3%. OPEC+ cut their 2024 and 2025 production forecasts on projections of economic weakness in China and India. WTI climbed past $70.00 per barrel.

Gold prices continued to ascend for the third consecutive trading day, peaking at around $2,721 a troy ounce, as investors digested soft US CPI data. Silver consolidates shy of $32.00, capped on the downside by the 50-day SMA, and with a clear path to extend its gains.