The Australian dollar is rising after the positive jobs report and markets await the ECB and BOE meeting today
Asian equities recovered as the news that the Trump administration has reached out to China for a new round of trade talks, which raised hopes that a deal could be struck in the bitter tariff dispute between the world’s two biggest economies.
A report from Australia revealed that the economy added a net of 44 K jobs for the month of August, which was better than July’s revision but also outmatches expert’ estimates of a 15,000 increase. similar, the unemployment rate was also positive, when it matched last month’s 5.3% reading, which remains the lowest since November 2012.
The dollar momentum was capped while the Chinese yuan advanced following news that Washington was seeking a new round of trade talks with Beijing reduced safe-haven demand for the US currency. The euro and pound traded steady ahead of the policy decision by the ECB and the BOE scheduled later in the day. The dollar retreated following the news that the Trump Administration has invited Chinese officials to restart trade talks.
As for Asian equities trader, they took cues from their US session counterparts and extended celebration over the U.S. extending an invite to Chinese reps for another round of trade negotiations this month. Nikkei is up by 0.95% to 22,820.4, ASX 200 is down by 0.29% to 6,146.8, Shanghai index is up by 0.14% to 2,658.809 and Hang Seng is up by 1.46% to 26,729.4.
As for commodities, they failed to benefit from the risk-friendly trading environment. However gold took some hit on some dollar strength, while crude oil prices were negatively impacted by OPEC downgrading its 2019 global demand forecasts for a second consecutive month on Wednesday. Gold is down by 0.01% to $1,205.92 per troy ounce, U.S. WTI is down by 0.50% to $$69.88 per barrel and Brent crude oil is down by 0.54% to $79.28per barrel
Going forward, investors would closely monitor the Bank of England’s crucial interest rate decision, scheduled to release in a few hours
EURUSD: Intraday bias in EUR/USD remains neutral at this point. With 1.1525 minor support intact, rebound from 1.1300 could extend higher.
GBPUSD: No change in GBP/USD’s outlook. With 1.2895 minor support intact, further rise is expected for 100% projection of 1.2660 to 1.3045 from 1.2785 at 1.3165, and possibly above.
USD/CAD: USD/CAD’s decline from 1.3225 is still in progress and deep fall might be seen.
USD/CHF: Intraday bias in USD/CHF remains neutral for the moment. With 0.9765 minor resistance intact, the deeper decline could still be seen.
USD/JPY: Intraday bias remains neutral at this point. While the consolidative pattern from 111.85 might extend with another fall.
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