Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their weekly gains on Friday as traders await the US Nonfarm Payrolls (NFP) report for the next directional catalyst.
The NZD/USD pair gathers strength to near 0.5895 during the Asian trading hours on Friday. The US Dollar (USD) softens against the New Zealand Dollar (NZD) following Federal Reserve (Fed) Governor Christopher Waller’s remarks. Traders brace for the US August employment report later on Friday.
Japanese Finance Minister (FM) Satsuki Katayama said on Friday that the officials will closely monitoring bond markets with heightened urgency.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is losing ground for the third consecutive day and trading around 99.00 during Asian hours on Friday.
Silver (XAG/USD) edges lower during the Asian session on Friday, snapping a two-day winning streak to the weekly high set the previous day.
AUD/USD extends its gains for the third successive day, trading around 0.7210 during the Asian hours on Friday.
The USD/CAD pair consolidates below the 1.3800 mark during the Asian session on Friday and remains close to a nearly two-week low, touched the previous day.
The GBP/USD pair gathers strength to near 1.3530 during the early Asian trading hours on Friday. The British Pound (GBP) edges higher against the US Dollar (USD) following hawkish remarks from a Bank of England (BoE) policymaker.
West Texas Intermediate (WTI) oil price moves little after registering losses in the previous day, trading around $89.50 per barrel during the Asian hours on Friday.
On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7787 compared to the previous day's fix of 6.7807 and 6.7098 Reuters estimate.
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The USD/JPY pair enters a bearish consolidation phase during the Asian session on Friday and currently trades near the 155.75 region, nearly unchanged for the day.
The EUR/USD pair trades on a flat note around 1.1625 during the early Asian session on Friday. Traders prefer to wait on the sidelines ahead of the US key employment report for August, which will be published later on Friday.
Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee member Carl Hansen said on Thursday that future monetary policy moves hinge on trends across broad economic data sets.
Gold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday.
The GBP/JPY tanks amid speculation of intervention by Japanese authorities in the FX markets, driven by a rate check by Tokyo. The cross-pair drops more than 300 pips, trades at 210.92, down by more than 1.40%.
The Australian Dollar rises against the US Dollar on Thursday as Fed Governor Waller turns moderately dovish ahead of the September meeting, even as Oil prices rise due to a resumption of hostilities in the Middle East. The AUD/USD trades at 0.7200, up 0.44%.
The New Zealand Dollar trades just under 0.5900 into the New York afternoon, up roughly half a percent, after a session that retraced most of Wednesday's decision-day slide without a single New Zealand input.
Geoff Yu at BNY highlights CNY as the main outlier in the U.S. trade-weighted basket, showing behavior opposite to other key currencies. CNY failed to react positively to July–August Fed and Treasury decisions, with weak domestic growth reinforcing easing expectations.
The Yen has produced in two sessions what the largest intervention on record could not, and it did so without a single reported purchase.
The Bank of Mexico (Banxico) Deputy Governor Jonathan Heath said that the central bank can wait to reduce interest rates, signaling that further easing is possible but in about a year or more, as he qualified the current monetary policy stance as “appropriate.”
The Mexican Peso appreciates against the US Dollar on Thursday, with the latter weakening amid a dovish tilt by Fed Governor Waller and speculation about an FX market intervention to boost the Japanese Yen. The USD/MXN trades at 16.92, down 0.32%.
UOB economist Jester Koh highlights that Singapore’s electronics PMI rose in August, with broad-based gains in new export orders, output and backlogs.
Sterling has spent Thursday recovering a little of what it lost this week, with GBP/USD trading near 1.3530, roughly a third of a percent higher, after the 50-day Exponential Moving Average (EMA) just under 1.3500 held for a second consecutive session.
The Dow Jones Industrial Average closed just under 53,700 on Thursday, up roughly 620 points and close to 1.2%, its strongest session since August 4, after a Fed governor said he would be inclined to support holding rates at the September 15-16 meeting if the next two weeks of inflation data behave.
MUFG’s Lloyd Chan argues that while the pace of Rupiah depreciation may slow, the broader weakening trend is set to continue. USD/IDR has pulled back as crowded long positions unwind and some foreign inflows return, but elevated US yields and high Oil prices remain headwinds.