USD lower as jobless claims jump
The US dollar was sharply lower overnight after a jump in US weekly jobless claims was seen as a sign of potential labour market weaknesses – making a rate hike next week less likely.
US weekly unemployment claims jumped from 236k last week to 261k overnight.
The news hit US bond yields and boosted US stockmarkets. The S&P 500 gained 0.6% while the Nasdaq climbed 1.3%
Aussie at one-month highs
The falling expectations for a Federal Reserve rate hike next week pressured the greenback with the US dollar index down 0.7% overnight.
Most currencies jumped against the USD with the AUD/USD the strongest, up 1.0%, as it reached one-month highs.
The NZD/USD gained 0.9%.
The US dollar fell in Asia with the USD/SGD down 0.5% as it fell to three-week lows.
The USD/CNY fell 0.3% as it dropped from six-month highs.
Rising hope in the land of the rising sun
The Japanese yen was also notably stronger yesterday after a run of better data saw markets re-think the possibility of rate hikes from Japan.
Japan’s March-quarter GDP was unexpectedly strong – up 0.7% versus the .5% expected – while an increase in bank lending was also seen as positive.
The Japanese yen, recently weaker, rebounded yesterday, with the USD/JPY down 0.9%.
Key global risk events
Calendar: 5 – 9 June
All times AEST
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