© Reuters. Aussie drops in Asia
Investing.com — The Aussie fell in Asia on Friday on disappointing retail sales, the markets gear up for non-agricultural apyrolls in the United States later in the day.
In Australia, retail sales for September came in flat, compared to a 0.4% gain seen, during the, to be expected, the 0.1% for the third quarter, widely missing the 1.2% increase in won. Before, in China, reports Caixin services PMI for October, with a 50.8 level seen.
AUD/USD fell 0.32% to 0.7688, after the retail sales, while USD/JPY changed hands 113.99, down 0.08%.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.02% to 94.60.
Overnight, the dollar lower, traded against a basket of major currencies, as investors digested upbeat labour market data in front of President Donald Trump, the choice of candidate to head the Federal Reserve.
A couple of upbeat labour market report pointed to underlying strength in the labour market before non-farm payrolls, due Friday.
The U.S. labor Department reported Thursday that initial applications were on unemployment assistance to 5,000 to a seasonally adjusted 229,000 for the week ended Oct. 28, had expected a steeper drop than economists.
In a separate report, the labor Department said that non-farm productivity, which measures hourly output per worker increased from 3% annualized rate, exceeding economists ‘ forecasts of 2.4%.
The better-than-expected reports on the labor market following an ADP report released on Wednesday private employers added 235,000 jobs in October, stoking expectations for a bullish non-farm payrolls report due Friday.
The data comes amid speculation that Donald Trump is set to nominate Fed Governor Jerome Powell to the Federal Reserve’s lead at the beginning of February.
Losses in US dollars, however, were limited by a slump in the pound to a nearly three-week low, after the Bank of England to increase even though the interest rates, said it was «no rush,» raise it again.