The aussie is dragged lower after the mixed jobs report earlier

WCRS 20-02

The aussie and kiwi continue to fail to find any reprieve - despite equities pushing higher - with the former being dragged to fresh decade lows after a mixed jobs report earlier.

The unemployment rate ticked a little higher and that was enough for the market to react to drive AUD/USD to a low of 0.6630 before a mild bounce near 0.6650 now.

The kiwi was indirectly affected as the currency slid to new lows for the year, breaking last week's low of 0.6378; the level just before the post-RBNZ bounce.

The dollar is continuing to keep more steady after a solid advance against the likes of the yen and pound in overnight trading. USD/JPY is observing calmer tones around 111.35-45 as we look towards the start of European morning trade.

Looking ahead, risk will once again be a key factor in the market but at this stage, individual themes are also largely at play. Among other things:

1) Gold flirts with a technical breakout to the topside

2) USD/JPY deviates from yields correlation to break higher, fills the May 2019 gap

3) Pound drops ahead of key data, cable under 100-DMA and EUR/GBP rebounds from 0.83

4) EUR/USD sitting on a knife's edge still

5) AUD and NZD can't get off the floor, not the time to catch the falling knife

6) Wall Street keeps the party going (not that this needs to be said anymore I think)