Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The Australian dollar may be supported by the jobs data
The releases of employment change and the unemployment rate for Australia are expected on February 21, at 2:30 MT time. We need to pay attention to the jobs data, as it relates to consumer spending, which accounts for a majority of overall economic activity. Last time, the level of employment change outperformed the forecasts. The employment in Australia increased by 21.6 thousand jobs (vs. 17.3 thousand expected). The level of unemployment rate declined more than analysts expected. As a result, the aussie rose significantly. If the situation repeats itself, this will be good news for the Australian dollar.
• If the employment change is higher, and the unemployment rate is lower than the forecasts, the AUD will rise;
• If the employment change is lower, and the unemployment rate is higher than the forecasts, the AUD will fall.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.