The US Dollar (USD) faced challenges in recovering after a decline against its major rivals on Wednesday. Traders are focused on upcoming US economic data, including the ADP Employment Change for August, weekly Initial Jobless Claims, and August ISM Services PMI. Additionally, Eurostat will release Retail Sales data for July.
US Job Openings Data Pressure USD
Data from the US Bureau of Labor Statistics revealed that job openings reached 7.67 million at the end of July, falling short of the expected 8.1 million. This shortfall put downward pressure on the USD. After peaking at 101.91 on Tuesday, the USD Index fell by 0.5% on Wednesday and remains just above 101.00 in early European trading. The benchmark 10-year US Treasury bond yield dipped below 3.8%, while Wall Street’s main indexes closed mixed. US stock index futures are slightly lower early Thursday.
RBA Comments on Inflation and AUD/USD Reaction
Reserve Bank of Australia (RBA) Governor Michele Bullock commented at an Anika Foundation event that the central bank needs to see clear signs of slowing inflation before making any decisions on interest rates. Despite these remarks, the AUD/USD remained steady above 0.6700, showing little reaction.
German Factory Orders Exceed Expectations
Germany’s Factory Orders increased by 2.9% month-over-month in July, significantly surpassing the anticipated contraction of 1.5%. Following this positive data, EUR/USD maintained its position, trading slightly below 1.1100 in the European morning.
BoJ’s Takata Comments Impact USD/JPY
Bank of Japan (BoJ) Board Member Hajime Takata noted that Japan’s current real interest rate is below the estimated natural rate, indicating accommodative monetary conditions. USD/JPY experienced significant losses for the second consecutive day on Wednesday, falling over 2%. The pair is trading at its lowest level since early August, around 143.50.
GBP/USD Benefits from USD Weakness
GBP/USD gained from the USD’s weakness and closed positively on Wednesday. The pair remains steady near 1.3150 on Thursday.
Gold Continues to Rise
Gold prices saw modest gains on Wednesday and continued to rise during Thursday’s Asian trading hours. XAU/USD was last trading above $2,500.
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