USD Rebounds Before NFP!

thecekodok

 Opening the September market, the US dollar traded steady after ending last month's trade with a 1.7% gain.


The start of the Asian session saw the dollar index little changed at around 103.60 against most major currencies.


Earlier on Wednesday, the currency king fell sharply following disappointing US private sector ADP employment and gross domestic product (GDP) data.


ADP led to today's (Friday) NFP report showing slower growth in August, while the second reading GDP grew 2.1% in the second quarter from the 2.4% initially estimated.


Even so, the US dollar bounced back on Thursday as investors failed to react significantly to China's better-than-expected manufacturing and services PMI data.


In the New York session, personal consumer expenditure (PCE) data, the main indicator of Federal Reserve (Fed) inflation showed an increase in the annual rate from 4.1% to 4.2% in July.



US jobless claims were slightly lower than market expectations, which gave relief to investors ahead of tonight's NFP release.


Markets expect the US to add 169,000 jobs in August, up from the previous 187,000, while the unemployment rate was unchanged at 3.5%.


Meanwhile, movements in other currencies saw the Aussie, New Zealand and Canadian dollars move flat following gains recorded on Wednesday.


The euro, on the other hand, lost all of its previous gains even after showing weaker-than-expected inflation figures, up 5.3% from 5.5%.


Also witnessing a decline was the pound currency which traded at around 1.2667 against the greenback during today's Asian session.

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