With the ECB decision now out of the way, FX players are waiting only for the U.S. release of private sector jobs growth for the month of January. Due out later today, a recent analysts’ poll suggests that 185,000 new jobs will have been added, if realized a significant jump from the paltry few in December. The U.S. Dollar, as a result, edged lower during the trading in the Asian session, with investors anxious for numbers which will either support or refute the Federal Reserve’s tapering plans. Yesterday, one data released showed that new benefits claims for jobless fell unexpectedly in the last week, which would have given the Fed additional ammunition to continue tapering.
As reported at 10:33 a.m. (JST) in Tokyo, the U.S. Dollar Index slipped some 0.2% to trade at 80.886 .DXY; the Index is used by FX traders to measure the dollar’s relative strength as compared to the weighted average of major rivals. The USD/JPY traded at 102.03 Yen, a loss of 0.1% while the EUR/USD edged higher to $1.3619, boosted there after the ECB gave no indication that they perceived deflation as yet a concern.
Aussie Dollar Reacts to RBA Statement
In Australia, the AUD/USD trading at $0.8941, a loss of about 0.14% after the Reserve Bank of Australia released its quarterly statement earlier; the pair has traded within a relatively tight range between $0.8924 and $0.8972 suggesting that investors still don’t know what to make of the statement. According to the RBA, the outlook for the Australian economy has improved given the recent depreciation of the Aussie Dollar however there are still employment-related challenges that will likely weigh on the currency.