EUR/USD
EUR/USD is trading on the back foot below 1.1100 in the European morning on Thursday. The pair struggles amid cautious markets even as the US Dollar maintains its bearish streak heading into the key US labor market data.
GBP/USD
GBP/USD trades with a slight positive bias near 1.3150 in European trading on Thursday, albeit it lacks strong follow-through buying, as traders turn cautious ahead of the top-tier US jobs data. Broad US Dollar weakness helps the pair stay afloat.
USD/JPY
The Japanese Yen (JPY) holds ground against the US Dollar (USD), buoyed by a second straight month of rising real wages in Japan. In July, Japan’s Labor Cash Earnings grew by 3.6% year-on-year, a deceleration from June’s 4.5% increase but the highest since January 1997, surpassing market expectations of 3.1%. This strong performance reinforces speculation that the Bank of Japan (BoJ) may implement another interest rate hike before the end of 2024.
AUD/USD
The Australian Dollar (AUD) inches lower against the US Dollar (USD) despite positive Trade Balance data released on Thursday. Australia’s trade surplus widened to 6,009 million MoM in July, exceeding the expected 5,150 million and 5,589 million in the previous reading. The Reserve Bank of Australia (RBA) Governor Michele Bullock spoke at “The Anika Foundation” in Sydney on “The Costs of High Inflation,” stating that it is too early to consider rate cuts. Currently, the board does not anticipate being able to reduce rates in the near term.
NZD/USD
The NZD/USD pair loses traction around 0.6195 during the early Asian session on Thursday. The concerns about the Chinese economic slowdown weigh on the China-proxy New Zealand Dollar (NZD). Traders will keep an eye on the release of the US ISM Services Purchasing Managers Index (PMI), which is due later on Thursday.
USD/CAD
USD/CAD retraces its recent losses, trading around 1.3510 during the Asian hours on Thursday. The US Dollar (USD) remains solid as traders adopt caution ahead of the release of US ISM Services PMI and Initial Jobless Claims scheduled to be released later in the North American session.
USD/CHF
The USD/CHF pair extends its decline around 0.8460 during the early European session on Thursday. The growing speculation that the US Federal Reserve (Fed) will cut a larger interest rate in September exerts some selling pressure on the US Dollar (USD). Investors will focus on the release of the US ISM Services Purchasing Managers Index (PMI), the ADP report on private-sector employment and weekly Initial Jobless Claims on Thursday ahead of the highly anticipated August Nonfarm Payrolls (NFP).
CRUDE OIL
Oil prices edged up after plunging to multi-month lows previously as major producers may delay an output increase planned for next month and U.S. inventories fell, though the gains were limited by persistent demand concerns.
Gold price is gathering pace to yield a sustained move above the $2,500 threshold in the Asian session on Thursday, as traders turn their focus to the key US ADP Employment Change data and the ISM Services PMI due later in the day.
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