It was a mixed day across major FX. EUR/USD, for example, extended its Wednesday losses just a touch to lows circa 1.0783 before managing to bounce back above 1.1800.

As mentioned in the headline the Australian dollar was on the soft side. Australia’s December labour market report showed unemployment above expected and a net loss of jobs in the month against a rise expected. Some of the disappointment was reduced by the job losses being in part-time while full-time job numbers rose. Nevertheless, AUD/USD extended its Wednesday fall to lows under 0.6900. Its crawled back above the figure as I post.

NZD/USD traded a little lower with AUD/USD. New Zealand’s Prime Minister announced she’d be resigning on February 7 and not contesting the upcoming election in October this year. PM Jacinda Ardern has been in the job for just over 5 years and said as her reason:

  • “I know what this job takes and I know I no longer have enough in the tank to do it justice.”

USD/JPY continued its swings, albeit in a much smaller range than Wednesday’s. As I update its on its lows for the session circa 128.20. Data from Japan today showed another in its long string of monthly trade deficits. Exporters performed solidly. The stronger yen and falling energy prices helped lower the import bill.

From the Federal Reserve we heard more from Harker. Dallas branch President Logan also spoke, stating her support for a +25bp Federal Open Market Committee (FOMC) rate hike at the upcoming January 31/February 1 meeting.

Oil fell while gold steadied a touch better bid.

audusd wrap 19 January 2023