US jobs beat forecasts, but growth continues to slow
The US jobs report beat expectations for an incredible twelfth-consecutive month on Friday, boosting the US dollar, but the overall series continues to show a slowdown in US labour market activity.
The critical US nonfarm payrolls report showed the US employment market produced 236k new jobs in March – above the 228k forecast – and continued a year-long run of forecast-beating results.
The unemployment rate fell from 3.6% to 3.5%.
However, the number also provided evidence of an ongoing reduction in the pace of growth with the result down from the 326k reported in February, and extending a slowing trend seen since mid-2022.

Aussie, kiwi lower
The US dollar benefited from the jobs result with the USD index nearing two-week highs.
The Australian dollar was weaker with the AUD/USD down 0.5% to two-week lows.
The NZD/USD also fell 0.5% to two-week lows.
Otherwise, it was a mostly quiet trading session over the Easter break, with the euro and British pound maintaining recent strength.
The Japanese yen was the one notable mover – down sharply on Monday after new Bank of Japan governor, Kazuo Ueda said it was appropriate to keep interest rates low in Japan.

US inflation reading key for greenback
Looking forward, the US dollar remains in focus this week with major inflation readings and the Federal Reserve minutes due.
Most importantly, Wednesday night’s inflation reading will be key for the Federal Reserve’s next move.
Market forecasts are looking for a big fall in headline inflation – from 6.0% in February to 5.2% in March.
In Australia, Thursday’s employment number will be the highlight, while it’s a quieter week in NZ.

Aussie, kiwi at lows after US jobs
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Calendar: 10 – 15 April

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