7 Feb 2014
European open: US non-farm payrolls in focus
FXStreet (London) - The Reserve Bank of Australia monetary policy statement pointed to a weaker AUD helping to lift the Australian economy.
“The outlook for the domestic economy is a little stronger over 2014 than at the time of the November Statement,” said the announcement from the RBA “The revision reflects, in part, the effect of the lower exchange rate, which is expected to provide some boost to activity in the traded sector. As foreshadowed by the improvement in a number of indicators of activity over recent months, GDP growth is likely to strengthen a little in 2014 though to a pace that is still only trend at best.”
AUD/USD traded to a peak of USD0.8972 before falling sharply to USD0.8924. The pair then ground back losses on improved risk sentiment overnight, regaining ground to USD0.8943, close to its opening price.
USD/JPY climbed overnight, with optimism ahead of the US non-farm payroll statistics, scheduled to be released at 13:30 GMT. The Nikkei rallied on improved risk sentiment, climbing 2.17 percent.
German trade balance data released this morning once again showed a decline in German imports, down 0.6 percent after an expected 1.2 percent climb. However, exports also declined by 0.9 percent, increasing the German trade surplus to EUR18.5bn.
In the US, non-farm payroll numbers will dominate. Consensus expectations are for a strong print at 185k, though recent momentum suggests there may be further upside. A revision of last month’s unexpectedly weak numbers could be more of a driver for a dollar surge than a marginal increase on consensus expectations for January.
“The outlook for the domestic economy is a little stronger over 2014 than at the time of the November Statement,” said the announcement from the RBA “The revision reflects, in part, the effect of the lower exchange rate, which is expected to provide some boost to activity in the traded sector. As foreshadowed by the improvement in a number of indicators of activity over recent months, GDP growth is likely to strengthen a little in 2014 though to a pace that is still only trend at best.”
AUD/USD traded to a peak of USD0.8972 before falling sharply to USD0.8924. The pair then ground back losses on improved risk sentiment overnight, regaining ground to USD0.8943, close to its opening price.
USD/JPY climbed overnight, with optimism ahead of the US non-farm payroll statistics, scheduled to be released at 13:30 GMT. The Nikkei rallied on improved risk sentiment, climbing 2.17 percent.
German trade balance data released this morning once again showed a decline in German imports, down 0.6 percent after an expected 1.2 percent climb. However, exports also declined by 0.9 percent, increasing the German trade surplus to EUR18.5bn.
In the US, non-farm payroll numbers will dominate. Consensus expectations are for a strong print at 185k, though recent momentum suggests there may be further upside. A revision of last month’s unexpectedly weak numbers could be more of a driver for a dollar surge than a marginal increase on consensus expectations for January.