AUD/USD broke above 0.7600 briefly on Friday after softer than forecast US NFP report for August. The US created 151k jobs vs. 180k forecast and the wage growth was also a little weak at 0.1% vs. 0.2% m/m.
Importantly though the USD selloff was very short-lived and we saw USD buying across the board with USD/JPY leading the rebound to Y104 fresh day highs. The AUD/USD reversed back to 0.7550 the same level as before the US numbers and closed quietly at 0.7570.
The relatively uninspired moves in the AUD/USD have left the market without direction with the September FED rate hike chances still 1/5 and the RBA unlikely to cut anytime soon again.
The RBA meets tomorrow and a dovish tilt is forecast given that they only cut last month but they are very like to remain on hold. The usual concerns about AUD strength are likely to be mentioned but the next move by the RBA will likely require 3rd quarter CPI numbers and so a very wait and see approach is likely to be highlighted.
OIL/USD managed a small recovery to $44.50 but still ended sharply lower on the week down from $47.50.
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