Dollar on the rise on NFP Friday against major currencies, as bulls and bears alike, are eagerly awaiting the NFP release due later in the day.
Following Thursday’s tightened collar against the dollar’s neck as mixed economic releases flooded the US market, on NFP Friday, things are starting to finally pick up again for the greenback.
ADP payroll processor reported yesterday that 250,000 jobs were added in December in the US private sector, beating all expectations.
However, another report highlights that US unemployment claims rose by 3,000 last week to 250,000, below expectations for a 6,000 drop.
As the Feds’ December 2017 meeting minutes stressed that the US labour market and economic activity remain solid, despite stubbornly low inflation.
The Feds concluded their last meeting in 2017 on a positive note, leaving room for gradual rate hikes in 2018, but the pace could accelerate if inflation goes up.
Dollar on the Rise
Sensitive to such hawkish projections, the dollar is on the rise! The US dollar index, measuring the buck’s strength against a trade-weighted basket of six of its major peers, gained about 0.01%, rising to 91.69 by 02:00 am ET (06:00 GMT).
The Japanese yen and the Swiss franc traded lower against the rising dollar, with USDJPY adding a few pips to 113.216 (on the live chart), following a back-foot open at 112.800, and USDCHF rising a little to 0.97447 (open daily) and trending slightly below the 0.97700 levels.
Across the Pacific, the Aussie and the New Zealand dollar were weaker against their US counterpart. AUDUSD shed gains, losing about 0.31% and going down to 0.78633 (open on the daily chart), while the NZDUSD lost about 0.08% to 0.71550 (open daily).
Earlier on the NFP Friday, the Australian Bureau of Statistics released the Trade Balance, which showed that Australia’s deficit broadened to A$628,000 in November from A$302,000 in October, the figure of which was revised from an estimated A$105,000.
Analysts had prognosticated that the country’s trade deficit would rise to only A$550,000 in November.
Meanwhile, as the NFP Friday is also a big day for Canada, which will also release its employment change later in the day, USDCAD went up 0.10% to 1.24907 (daily open). The pair seems to be on a steady rise, trading at 1.25001 on the live daily chart.