FX Today: Australian, US jobs report take centre stage

The US Dollar (USD) sold off sharply on Wednesday, as investors continued to digest the largely anticipated rate cut by the Federal Reserve, while the updated “dots plot” surprised no one.

Here’s what to watch on Thursday, December 11:

The US Dollar Index (DXY) reversed two daily gains in a row and collapsed to multi-week lows in the 98.60-98.50 band amid declining yields following the FOMC event on Wednesday. The Balance of Trade results are due, seconded by the usual weekly Initial Jobless Claims and Wholesale Inventories.

EUR/USD regained strong traction and left behind four consecutive daily pullbacks, revisiting once again the vicinity of the 1.1700 hurdle. Next on tap on the domestic calendar will be Germany’s final Inflation Rate on December 12.

GBP/USD rose sharply and challenged monthly peaks in the area just shy of the 1.3400 barrier. The RICS House Price Balance is due, seconded by the speech by the BoE’s Kroszner.

USD/JPY dropped markedly toward the 155.80 zone following the post-FOMC marked pullback in the Greenback. The BSI Large Manufacturing index comes next, seconded by the weekly Foreign Bond Investment figures.

AUD/USD advanced to levels last seen in mid-September around 0.6680 in response to the marked decline in the buck. The release of the labour market report will take centre stage in Oz.

WTI prices reversed the initial decline and managed to regain the $59.00 mark per barrel, as traders continued to assess the geopolitical scenario and the Fed’s interest rate decision.

Gold prices rose to three-day highs near $4,240 per troy ounce in the wake of the FOMC gathering and amid the pronounced pullback in the Greenback and US Treasury yields. Silver prices, in the meantime, extended their rally to record highs near the $62.00 mark per ounce.