Global overview
The US dollar staged a comeback on Friday after the key US jobs report beat expectations for the first time in three months. The USD index returned to three-month highs. This week, the RBA and Bank of Canada both meet, while China data remains key.
USD returns to three-month highs
The US dollar staged a comeback on Friday after the monthly US jobs report was better than expected.
The August non-farm employment was reported with a 187k gain – just above the 170k expected.
The unemployment rate, however, jumped from 3.5% to 3.8%.
US shares saw small gains. The USD index jumped 0.6% as it returned to three-month highs.
Aussie, kiwi lower
Local currencies fell sharply as the US dollar gained.
The AUD/USD fell 0.4% after initially touching three-week highs.
The NZD/USD fell 0.3% with the pair also reversing sharply at three-week highs.
In Asia, the USD/SGD gained 0.3% while the USD/CNH fell 0.1%.
In other markets, the euro was the hardest hit, with the EUR/USD down 0.6%. The USD/JPY gained 0.5%.
Australian data in focus
Australia is likely to dominate the headlines in the first part of the week.
The Reserve Bank of Australia decision – the final with Philip Lowe as governor – is due on Tuesday.
On Wednesday, Australia June-quarter GDP is due. Australian growth has clearly slowed but remains in a better position than its peers. The quarterly result is forecast at 0.3% with the annual rate seen at 1.7%.
Later, the Bank of Canada decision is due.
From China, trade numbers, and key PMI numbers, are released this week.
USD index back at highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 4 – 8 September
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.
