Key economic data released today underlined a mixed picture of the US economy
The US Dollar Index continued its upward trajectory today, touching a two-week high near the 104.00 mark, strengthened by a string of positive economic indicators. The currency’s gain comes amidst a wider trend of strength for the greenback.
Key economic data released today underlined a mixed picture of the US economy. The JOLTS Job Openings saw a considerable decline to 8.73 million in October, indicating a cooling job market. However, the ISM Services PMI provided a more optimistic view, surpassing forecasts with a rise to 52.7, suggesting continued expansion in the service sector.
The performance of the US dollar has had notable impact on various currency pairs. The EUR/USD pair dropped below the critical threshold of 1.0800 after a continuous five-day drop. Similarly, the Australian Dollar softened, with the AUD/USD dropping past the significant level of 0.6550 and the AUD/NZD reaching its lowest close since mid-autumn.
In anticipation of economic reports due tomorrow, markets are closely watching the US labour market, with ADP employment data and the third quarter Unit Labor Costs report on the horizon. In addition, global focus is turning towards Australia’s Q3 GDP figures after the Reserve Bank of Australia’s decision to pause rate hikes, and Eurozone retail sales data are set to be released alongside a positively revised Eurozone PMI report from November.
In commodities, gold prices saw a drop to a weekly low at $2,010 per ounce, while silver also faced selling pressure, slipping to $24 per ounce. Meanwhile, crypto currencies bucked the trend of traditional assets with Bitcoin exceeding $43,000 and Ethereum breaking above $2,250, both reaching multi-month highs.
The Canadian dollar is also under scrutiny as USD/CAD jumps toward 1.3600 with markets expecting that the Bank of Canada will keep rates steady at an unchanged high of 5 per cent.
