Forex Today: Australia’s jobs report comes to the fore

There was no respite for the US Dollar’s (USD) march north on Wednesday. In fact, the Greenback has clinched its third consecutive day of gains, hitting at the same time fresh two-month highs. Solid US data and hawkish Fedspeak were more than enough to maintain the buck well bid vs. its usual competitors.

Here is what you need to know on Thursday, September 24:

The US Dollar Index (DXY) has revisited levels last seen in late July beyond the key 101.00 barrier, accompanied by an equally strong move higher in US Treasury yields across the curve. The weekly Initial Jobless Claims are due ahead of New Home Sales, Building Permits and the Q2 Current Account results. In addition, the Fed’s Williams, Barkin, Hammack and Paulson are due to speak, all before the Trump-Xi Summit.

EUR/USD has collapsed to the 1.1370 region, nearly challenging the area of yearly lows on the back of the sharp move higher in the US Dollar. The German Business Climate tracked by the IFO will be published ahead of speeches by the ECB’s Lane and Schnabel.

GBP/USD has flirted with the area of three-month lows near 1.3230 following the Greenback’s solid performance. The CBI Distributive Trades will be the sole release across the Channel, although attention will also be on comments from the BoE’s Bean, Dhingra and Breeden.

USD/JPY has surpassed the 158.00 barrier, up for the fourth consecutive day, to challenge its key 200-day SMA. Next up in Japan will be the preliminary S&P Global PMIs.

AUD/USD has receded to multi-week troughs in the low-0.7000s before attempting a lacklustre bounce. The Aussie is down for the third day in a row and is rounding off its third consecutive week in the red as well. The release of the August labour report will be the salient event in Oz.

Front-month WTI futures have partially reversed their multi-day bearish trend, briefly dipping below the $89.00 mark per barrel early in the day just to reclaim the $92.00 yardstick amid acceptable gains toward the end of the NA session.

Gold has rapidly left behind Tuesday’s small uptick and resumed its decline, slipping back to four-day lows just above the $4,250 mark per troy ounce. The yellow metal’s negative price action has followed the move higher in the US Dollar and the strong rebound in US Treasury yields across the spectrum.