US Dollar soars as jobs data smashes forecasts

Australian Dollar (AUD) loses gains as market mood sours 

Last Friday, the Australian Dollar (AUD) began the session on firm footing as Australian PPI printed above expectations in Q4 2023.

However, following the latest US jobs data, AUD began to relinquish its gains as markets shifted away from risk-sensitive currencies.

This morning, Australian trade data for December is due to print. With the trade surplus expected to shrink, AUD may weaken.

New Zealand Dollar (NZD) slides as consumer confidence prints below expectations 

The New Zealand Dollar (NZD) weakened last Friday, as consumer confidence missed forecasts.

While ANZ found consumer optimism in New Zealand to have increased in January, the index came in below expectations and undercut NZD exchange rates.

Owing to a lull in data releases, the ‘Kiwi’ may trade sideways during today’s session. However, a shift to risk-on trade may lift NZD.

Pound (GBP) listless amid growing BoE rate cut bets 

The Pound (GBP) was largely rudderless on Friday, as investors continued to digest the latest Bank of England (BoE) interest rate decision.

Muddled guidance served to restrict Sterling, as a growing divide between policymakers suggested rate cuts were on the table. Furthermore, a light data calendar prevented any recovery for GBP.

The only data of note due today is this evening’s final services PMI for January. Confirmation of a decent expansion in activity could boost GBP.

Euro (EUR) mixed amid lack of data 

The Euro (EUR) saw variable trade last Friday, amid a lack of impactful macroeconomic data releases.

However, diminished European Central Bank (ECB) interest rate cut bets continued to support the common currency, preventing severe losses.

The latest German trade data is due to print this evening. Economists anticipate a fall in the country’s trade surplus, which may weaken EUR exchange rates.

US Dollar (USD) rallies amid staggering payrolls rise 

Following a tepid start to last Friday’s trade, the US Dollar (USD) surged against its peers as non-farm payrolls eclipsed forecasts.

A stunning 353,000 jobs were created in January, substantially more than the expectation of 180,000. This boosted USD against its peers as investors pared back any lingering bets on a March rate cut from the Federal Reserve.

Tonight, the latest ISM services PMI is due to print. If this shows growing sector activity as expected, USD may climb further.

Canadian Dollar (CAD) struggles as oil prices slump 

The Canadian Dollar (CAD) came under pressure at the end of last week, as oil prices dropped by around 2% during the session.

Canada’s services PMI for January is due tonight. If sector activity slowed as forecast, the ‘Loonie’ may weaken.

Data Releases 

Feb 5th 10:30 AUD Balance of Trade (Dec) AU$11bn

Feb 5th 17:00 EUR DE Balance of Trade (Dec) €18.8bn

Feb 5th 19:30 GBP Services PMI (Jan) 53.8

Feb 6th 00:30 CAD Services PMI (Jan) 44.3

Feb 6th 01:00 USD ISM Services PMI (Jan) 52