Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The US jobs report on Friday will be a major factor in determining the direction of the US dollar. There will be a 170,000 increase in nonfarm payrolls, and the unemployment rate will drop from 3.8% to 3.7%. A strong report might support the Dollar’s recovery, while weak numbers, consistent with the ADP data, could cause a fall and a rise in Treasury yields.
On the eve of the NFP data, the US Dollar Index continues to decline. Japan will present Labour Cash Earnings and the Leading Economic Index during the Asian session. The Financial Stability Review will be released by the Reserve Bank of Australia. Germany will announce Factory Orders and Unemployment Rate later in the day. The day’s major event will be the US jobs report.
The US dollar fell for a second day in a row, but this decline is still regarded as corrective because the fundamentals have not changed much. Initial Jobless Claims in the US were below estimates and remained close to monthly lows, indicating that labour market conditions are still tight.
The EUR/USD price increased into the 1.0550 region and appears to have room to rise further, although the overall trend is still downward. On Friday, statistics for August’s factory orders will be released in Germany.
The USD/JPY was close to 148.00 as it continued to fluctuate with a negative bias, although US data might cause sudden changes. Labour Cash Earnings and the Coincident Index are among the figures for Japan that are due on Friday.
After failing to hold above 0.9200, USD/CHF continued to correct lower from monthly highs as it slipped towards 0.9120. Data on the unemployment rate and foreign reserves will be made public by Switzerland.
For the second day running, AUD/USD increased, crossing the 0.6350 mark. The resistance level at 0.6375 is where the pair will likely run into trouble during the Asian session. The Financial Stability Review, which will be released by the Reserve Bank of Australia (RBA), is not anticipated to contain any surprises.
The drop in crude oil prices caused the Canadian dollar to lag. After a four-day upswing, USD/CAD retreated and fell towards 1.3700. The Employment Report for Canada will be released on Friday, and 20,000 more jobs are anticipated overall.
Gold touched new monthly lows before rising to about $1,820. The decline in US Treasury yields has a small positive impact on the price of gold. After managing to hold above the crucial support level at $20.65, silver ended the day just below $21.00.
Also Read:
US stocks steady amid NFP countdown
NFP data expected to lose momentum
USD/JPY pair is trying to recover ahead of NFP
EUR/USD extends upward trend ahead of NFP data
Is China’s economy showing signs of stabilization?
