Greenback rebounds after last week’s sell-off
The US dollar has bounced strongly from last week’s losses with further gains seen overnight after a better-than-expected result from the US labour market.
The US’s weekly unemployment claims series dropped from 237k to 228k in a sign that fewer Americans are claiming unemployment benefits.
The USD index, sold down sharply last week’s after a drop in the June CPI number, rebounded from 15-month lows.
Aussie gives up job gains
The stronger greenback meant the Australian dollar gave up its gains seen earlier after a strong local jobs reading.
The Australian employment market saw a 32.6k gain in June – above forecasts for 15k. Full-time employment outperformed with a 39.3k increase. The unemployment rate was steady at a downwardly revised 3.5%.
While the headline numbers remain strong, the annual pace of jobs growth has fallen from 3.8% in December to 3.0% in June, in line with a fall in business confidence employment surveys.
While the AUD/USD initially gained 1.1% on the news, the pair fell as the USD gained, to end flat.
In other markets, the NZD/USD fell 0.5% while the USD/SGD gained 0.2%.
The USD/CNH bucked the trend, with the pair down 0.8%.
Fed, ECB and BoJ in focus next week
While today’s economic calendar is quieter than usual, next week’s agenda is packed.
Monday sees the release of the monthly PMI series. The purchasing manager indexes are the most up-to-date reading for the global economy.
Australian inflation is due on Wednesday and will be critical ahead of the Reserve Bank of Australia’s August 1st meeting.
Later next week, the big three central banks meet, with the Federal Reserve and European Central Bank on Thursday, and the Bank of Japan on Friday.
USD bounces after heavy CPI-inspired sell-off
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 17 – 21 July
All times AEST
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
