Dollar soft, Aussie firm as sentiment recovers before U.S. jobs data

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TOKYO, Oct 8 (Businesshala) – The safe-haven dollar hovered below one-year highs for key peers on Friday amid improved risk sentiment, while traders were wary of Federal Reserve policy normalization from the closely watched monthly payrolls report. Clues were awaited on the speed.

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The risk-sensitive Australian dollar hit a three-week high overnight, when it rose 0.55% against the greenback.

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Global equities rose and bond yields climbed after US Senate leaders moved to avert US debt defaults, while a global easing in energy prices eased fears of a deadlock.

“Improving risk appetite favors pro-growth currencies, with safe-haven pairs underperforming,” Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney, wrote in a client note.

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Cattrill added that the Aussie has made “a good move to move higher”, but the test will be whether it can stay around $0.7315 after several failed attempts this year.

Australia’s currency was almost flat on Thursday at $0.73105, when it reached $0.7324 for the first time since September 16.

The US dollar currency index, which measures the greenback against a basket of six peers, was little changed at 94.02 after trading in a tight range on Thursday, tracking last week’s high of 94.504, a level that was higher in September. Wasn’t seen since late 2020.

The dollar gained 0.06% to 111.69 yen, moving towards the upper end of the trading range of the past week and a half.

The euro consolidated around $1.1555 after falling on Wednesday to a 14-month low of $1.1529.

The Federal Reserve has said it could begin reducing its monthly bond purchases as soon as November and follow up with a possible interest rate hike next year, as the US central bank’s pandemic crisis policies stymie. speed is achieved.

Friday’s non-farm payrolls data is expected to show continued improvement in the labor market, with 500,000 jobs forecast in September, a Businesshala poll showed.

Meanwhile, sterling traded up 0.26% overnight at $1.3617.

Comments from the new Bank of England chief economist Hu Pill that inflationary pressures led to an increase in rates until February were initially thought, and were perhaps proving to be even more sticky this year.

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Currency Bid Price 0037 GMT . Feather

all spots

Tokyo Spot

Europe Spot

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BOJ. From Tokyo forex market information

Reporting by Kevin Buckland

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