August 9: Asian session
US dollar suffered from continuing weakness this week. The greenback was hurt as US payrolls data which fell short of market expectations creating uncertainty over how soon the Fed will start reducing its stimulus.
EUR/USD reached yesterday a 7-week high of $1.3400 and is trading now in the $1.3380 area. Euro is in demand before an Aug 14 report analysts said will show the currency region’s GDP returned to growth in Q2. Today there are some releases of medium importance like French industrial production and budget balance at 06:45 GMT. GBP/USD rose yesterday to $1.5574. Today sterling is little changed around $1.5540. Britain will release its trade balance at 08:30 GMT. USD/JPY slipped to 96.30 following a growth attempt capped at 97.00. USD/CHF is trading sideways around 0.9200.
AUD/USD dropped to $0.9080 following the release of the Reserve Bank of Australia’s statement on monetary policy for August, but quickly found support on lower-than-expected Chinese CPI (+2.7% y/y) and strong industrial production (+9.7% y/y), recovering to session highs around $0.9133. NZD/USD is trading sideways slightly below the $0.8000 mark. USD/CAD slid yesterday from the levels around 1.0430 to the area just above 1.0300. Now the greenback is in the 1.0325 zone. Watch for Canadian labor market data at 12:30 GMT. Analysts expect a gain in employment after the previous contraction.