By: DailyForex.com
The recent recovery by the U.S. Dollar is currently stalled as investors sit tight and await the key labor report release which could help dictate the direction that the Federal Reserve might move. Recently release manufacturing data which was below expectations suggested to many analysts that the Fed’s current ultra loose monetary policy could remain in place over the mid-term, but a strong outcome in the trio of labor data releases, especially Friday’s non-farms payroll data, could shift sentiment.
As reported at 12:09 p.m. (JST) in Tokyo, the U.S. Dollar Index was trading at 82.713 .DXY, moving away from Monday’s 1-month trough of 82.428 .DXY. The U.S. Dollar Index is used by investors to measure the greenback’s strength against a weighted basket of its major rivals. The USD/JPY pair also edged above the 100 market and was recently at 100.10 Yen, strengthening from the 1-month low of 98.86 Yen struck on Monday. The EUR/USD pair edged off a 1-month high of $1.3108 and was recently trading at $1.3079. The AUD/USD pair fell to a session low of $0.9605 and was closing in on the 19-month low struck last month and currency strategists believe that the Aussie’s downward trend needs overwhelmingly positive news in order to halt it.