USD: all attention to Manufacturing PMI Instruments to trade: EUR/USD, USD/JPY, USD/CHF US ISM Manufacturing PMI will be out on January 4 at 17:00 MT time…
Will the labor market support the AUD?
Australian jobs data will be announced on Thursday at 04:30 MT time.
Instruments to trade: AUD/USD, EUR/AUD, AUD/JPY, AUD/CHF
Last week, the Reserve Bank of Australia left its interest rate at 0.25% saying that no increase will take place until the progress is made towards full employment. Hence, the coming jobs data will largely contribute to financial policy. In February, jobless rate was in line with expectations at 5.1%. That, however, came after a staggering 5.3% in January, which was not among the observers’ forecasts. Therefore, an expectation for the March figure should be more conservative. Not only because of a relative unpredictability of the jobs data but because March is the first and the toughest month to reflect the true extent of the coronavirus hit.
- If the jobs data is better than forecast, it will support the AUD.
- Otherwise, the AUD will fall.
China will publish manufacturing and non-manufacturing PMIs on December 31, at 3:00 MT time.
The USA will publish Chicago PMI on December 30, at 16:45 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.