- The AUD/USD pair fell 1.27% in September against the greenback.
- The greenback appreciated for the fourth consecutive month against the Aussie.
- US Initial Jobless Claims makes a case for a pause in the bond tapering process.
The AUD/USD begins the Asian session on the right foot, is trading at 0.7220, posting a minimal gain of 0.01% at the time of writing. On the last trading day of September, market sentiment was downbeat, as major US stock indices recorded losses between 0.4% and 1.59%.
The US Dollar Index (DXY) finished the day at 94.24, slightly down 0.02%, while the US 10-year Treasury yield dropped four basis points, sitting at 1.492%.
The Australian dollar depreciated for the fourth consecutive month against the greenback
In September, the Australian dollar depreciated 1.27% against the greenback for the fourth consecutive month. However, the price action of the last two month’s is trapped between the 0.7105-0.7478 range.
The bond taper prospects weighed across all the US dollar counterparts. However, on Thursday, during the New York session, the US Initial Jobless Claims increased for the third consecutive week. The figure came at 362K, against 335K, foreseen by analysts. The data disappointed as we look forward to the Nonfarm Payrolls report in the following week.
The Federal Reserve Chairman Jerome Powell said one good employment report could convince the board that they have reached the bar needed to reduce the QE.
On Friday, the Australian economic docket, the Commonwealth Bank of Australia, and IHS Markit Economics will release the PMI for September, expected at 57.3. Later on, it will feature the Home Loans and Investment Lending for Homes, both reports related to August figures.
Meanwhile, in the US, Personal Consumption Expenditures and Personal Income for August will be revealed on Friday at 12:30GMT. Later during the day, the Markit and ISM Manufacturing PMIs could provide clues regarding production. Further, the UoM Consumer Sentiment will be disclosed.
ADDITIONAL KEY LEVELS TO WATCH
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains near 1.0300 after US PMI data
EUR/USD trades in positive territory at around 1.0300 on Friday. The pair breathes a sigh of relief as the US Dollar rally stalls, even as markets stay cautious amid geopolitical risks and Trump's tariff plans. US ISM PMI improved to 49.3 in December, beating expectations.
GBP/USD holds around 1.2400 as the mood improves
GBP/USD preserves its recovery momentum and trades around 1.2400 in the American session on Friday. A broad pullback in the US Dollar allows the pair to find some respite after losing over 1% on Thursday. A better mood limits US Dollar gains.
Gold retreats below $2,650 in quiet end to the week
Gold shed some ground on Friday after rising more than 1% on Thursday. The benchmark 10-year US Treasury bond yield trimmed pre-opening losses and stands at around 4.57%, undermining demand for the bright metal. Market players await next week's first-tier data.
Stellar bulls aim for double-digit rally ahead
Stellar extends its gains, trading above $0.45 on Friday after rallying more than 32% this week. On-chain data indicates further rally as XLM’s Open Interest and Total Value Locked rise. Additionally, the technical outlook suggests a rally continuation projection of further 40% gains.
Week ahead – US NFP to test the markets, Eurozone CPI data also in focus
King Dollar flexes its muscles ahead of Friday’s NFP. Eurozone flash CPI numbers awaited as euro bleeds. Canada’s jobs data to impact bets of a January BoC cut. Australia’s CPI and Japan’s wages also on tap.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.