Asian Session – US dollar broadly weaker, aussie down on poor jobs numbers
February 13, 2014 7:49 am
The Australian dollar tumbled across the board following weak jobs data. The Australian economy lost 3,700 jobs in January, which came on top of a slight downward revision in December’s figures. This resulted in raising the unemployment rate to the highest level since July 2003, at 6%.
The data disappointed economists who expected a rebound after a surprise fall in employed in December.
The aussie tumbled almost 1% against the US dollar in reaction to the soft data, ending the Asian session at 0.8939. On Wednesday the AUD rose to as high as 0.9066 on the back of strong China trade data.
In other currencies, the euro, pound and yen gained against the US dollar. Market participants are being cautious with trading the greenback today ahead of a report today that is forecast to show US retail sales stagnated in January.
The euro gained for the first time in three days against the dollar, gaining 0.23% to 1.3623. The rebound was mostly due to a weaker dollar. Yesterday the euro tumbled on comments from Executive Board member Benoit Coeure who signaled there is a possibility that the ECB would cut the (deposit) rate into negative territory. Later today, the ECB will release its monthly report.
Sterling extended gains against the dollar to reach a high of 1.6622, the highest since January 28 before ending the session with a 0.09% gain at 1.6609. The pound is being buoyed by BOE governor Mark Carney’s comments yesterday that the UK’s economic recovery was gaining momentum. Markets factored in a rate increase earlier in 2015, sooner than previously thought.
The dollar slid 0.46% to 102.05 after reaching as low as 101.98 from 102.51. US retail sales will be a key risk for the dollar later today. A relatively flat outcome for sales will hurt demand for the greenback.
The Australian dollar tumbled across the board following weak jobs data. The Australian economy lost 3,700 jobs in January, which came on top of a slight downward revision in December’s figures. This resulted in raising the unemployment rate to the highest level since July 2003, at 6%.
The data disappointed economists who expected a rebound after a surprise fall in employed in December.
The aussie tumbled almost 1% against the US dollar in reaction to the soft data, ending the Asian session at 0.8939. On Wednesday the AUD rose to as high as 0.9066 on the back of strong China trade data.
In other currencies, the euro, pound and yen gained against the US dollar. Market participants are being cautious with trading the greenback today ahead of a report today that is forecast to show US retail sales stagnated in January.
The euro gained for the first time in three days against the dollar, gaining 0.23% to 1.3623. The rebound was mostly due to a weaker dollar. Yesterday the euro tumbled on comments from Executive Board member Benoit Coeure who signaled there is a possibility that the ECB would cut the (deposit) rate into negative territory. Later today, the ECB will release its monthly report.
Sterling extended gains against the dollar to reach a high of 1.6622, the highest since January 28 before ending the session with a 0.09% gain at 1.6609. The pound is being buoyed by BOE governor Mark Carney’s comments yesterday that the UK’s economic recovery was gaining momentum. Markets factored in a rate increase earlier in 2015, sooner than previously thought.
The dollar slid 0.46% to 102.05 after reaching as low as 101.98 from 102.51. US retail sales will be a key risk for the dollar later today. A relatively flat outcome for sales will hurt demand for the greenback.
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