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Forex - Aussie down in Asia as trade data ahead, investors eye U.S. jobs

Published 10/05/2016, 07:07 PM
Updated 10/05/2016, 07:09 PM
Aussie weaker in Asia
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Investing.com - The Aussie ticked lower in Asia on Thursday ahead of trade data and the yen was mostly flat as investors readied for a U.S. jobs report at the end of the week seen as crucial for assessing rate hike chances in December.

AUD/USD traded at 0.7612, down 0.12%, while USD/JPY changed hands at 103.54, down, 0.04%. GBP/USD traded at 1.2750, up 0.05%, while EUR/USD was quoted up 0.01% to 1.1206.

Australia reports the trade balance for August with a deficit of A$2.3 billion seen.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 96.13.

Overnight, the dollar came off highs Wednesday after Fed member Charles Evans said earlier Wednesday he was “fine” with a December hike if data warrant it. Markets are currently pricing in around a 14.5% chance of a rate hike in November, according to Investing.com's Fed Rate Monitor Tool. For December's meeting, odds were at nearly 59.3%.

The ADP nonfarm employment showed a gain of 154,000 jobs, less than the 166,000 seen, setting up the focus on official nonfarm mpayrolls from the U.S. Department of Labor on Friday.

The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 57.1 last month from 51.4 in August. Analysts had expected the index to increase to 53.0.

As well, the value of new factory orders rose an unexpected 0.2% in August, compared to a decline forecasted as nondurables orders rose 0.2% and durable goods orders were revised up to a 0.1% increase, the U.S. Commerce Department said.

Sterling regained $1.27 mark after touching 30-year low at $1.26 on Brexit worries. The euro firmed after a report the ECB may wind down its bond-buying program.

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