🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Forex - Aussie gains in early Asia with focus on global monetary policy

Published 01/21/2016, 06:57 PM
Updated 01/21/2016, 06:59 PM
Aussie gains in early Asia
USD/JPY
-
AUD/USD
-
DX
-

Investing.com - The Aussie gained in Asia on Friday in a light regional data day with investors focused on an increasingly soft global monetary policy outlook.

AUD/USD traded at 0.7014, up 0.16%, while USD/JPY changed hands at 117.88, up 0.15%. Ahead in Japan comes the provisional manufacturing index for January with a level of 52.8 seen.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.02% to 99.14.

Overnight, the dollar remained broadly higher against the other major currencies on Thursday, after the release of positive U.S. economic reports and as the European Central Bank signaled the possibility of further easing measures in March.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 15 increased by 10,000 to 293,000 from the previous week’s total of 283,000. Analysts expected jobless claims to fall by 5,000 to 278,000 last week.

In addition, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to -3.5 this month from December's reading of -5.9. Analysts had expected the index to hit -5.0 in December.

Oil prices slid again on Thursday, re-approaching the 12-year lows hit in Wednesday’s session as a global supply glut continued to pressure prices. The dollar weakened against the safe haven yen on Wednesday as the plunge in oil prices added to fears over slowing global growth.

The euro weakened after ECB president Mario Draghi said it would be necessary to “review and reconsider” the bank’s monetary policy stance at its next meeting in March, when new economic projections become available.

He said lower oil prices should help consumers and businesses, but the risks to euro zone growth remained to the downside.

The ECB left the deposit rate at -0.3% after December’s cut and held the benchmark refinancing rate steady at 0.05%.

The bank expects interest rates to remain at present or lower levels for an extended period of time, Draghi said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.