Aussie the laggard ahead of European markets open

Author: Justin Low | Category: News

Meanwhile, the Japanese yen holds steady amid cautious risk mood

WCRS 13-06
The aussie is the notable currency on the back foot with AUD/USD lurking near the 0.6900 handle after it fell on the back of a slightly softer jobs report in Australia. Headline employment change beat estimates but that was largely contributed by part-time jobs as hours worked declined amid a higher unemployment rate than expected.

That signaled some concerns of weakening labour market conditions and presents a stronger case for the RBA to cut rates in the coming months as this will lead to subdued wage/inflation pressures in the bigger picture.

Meanwhile, the yen is holding firm as risk sentiment is a bit on the softer side as Asian equities are sitting in the red with US equity futures also down by 0.2% to start the session. Treasury yields are also slightly lower so that is also helping with pushing yen pairs to the downside in early trades today.

The rest of the major currencies bloc are little changed with the dollar a tad weaker with EUR/USD climbing back towards the 1.1300 handle. That said, the pair still trades in a 12 pips range today so there isn't much to really take notice of for now.

Looking ahead, the more cautious risk sentiment is likely to prevail with global trade tensions still ever present as I reckon markets will start shifting their attention towards tomorrow's US retail sales data for more clues on US economic conditions and the Fed.

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