Asia FX firms as dollar extends losses before nonfarm payrolls
Investing.com-- Most Asian currencies advanced on Friday, while the dollar eased further as traders bet that the Federal Reserve was done with its interest rate hikes, although anticipation of key nonfarm payrolls data kept gains in check.rose 0.1% in holiday-thinned trade, but still remained close to its weakest level in one year, at above 150 against the dollar.
This spurred increased bets that the central bank was done with its rate hikes for the year, and will begin cutting rates from mid-2024. TheAny signs of resilience in the labor market gives the Fed more impetus to hike interest rates, which could in turn reverse some of the dollar weakness seen this week. The Fed still left the door open for one more rate hike this year, although the move will be largely dependent on more economic data.
Friday’s data is expected to show a sharp decline in payrolls. But the data has also consistently beaten market estimates so far in 2023, as the U.S. labor market remained strong.Recent signs of sticky Australian inflation, coupled with a resilient labor market and retail spending are expected to spur the RBA into raising interest rates by at least 25 basis points next week.
The bank had hiked rates by a cumulative 400 basis points over the past year, but had kept them on hold since May to gauge the effects of the rate hikes on the Australian economy.We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: Include punctuation and upper and lower cases.
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