USD Strength Persists as Yields Rise; Focus Shifts to Australian Jobs Data

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Forex Market 

USD Extends Gains as Strong U.S. Data and Higher Yields Support Dollar 
The U.S. dollar extended its gains overnight, supported by stronger-than-expected durable goods data and a rise in Treasury yields, reinforcing bullish momentum even as equity markets moved higher. The DXY index strengthened, reflecting broad-based demand for the greenback across major currency pairs.
USD/JPY pushed higher and broke through recent resistance levels, while EUR/USD slipped below key support and remained under pressure. GBP/USD softened earlier in the session before stabilising. Meanwhile, AUD/USD traded within a relatively tight range before settling slightly lower, and NZD/USD also fluctuated within recent bounds.
In Australia, the fourth-quarter Wage Price Index rose in line with expectations, signalling steady wage growth. Across the Tasman, the Reserve Bank of New Zealand left the Official Cash Rate unchanged, reiterating its data-dependent stance and leaving the door open for potential further tightening should inflation and activity data warrant it.
From a technical perspective, buying interest in AUD/USD is emerging near major psychological support, while selling interest remains positioned at higher resistance levels.

 

General Market

Wall Street

  • Dow Jones: +0.3% | 49,694
  • S&P 500: +0.7% | 6,888
  • Nasdaq: +1.0% | 22,810
  • VIX: -5.0% | 19.28

Asia-Pacific

  • ASX 200: +0.5% | 9,007 (Tech +2.3%, Real Estate +1.5%)
  • Nikkei 225: +1.0% | 57,144
  • Shanghai Composite: -1.3% | 4,082

Europe

  • FTSE 100: +1.2% | 10,686
  • DAX: +1.1% | 25,278
  • CAC 40: +0.8% | 8,429
  • Stoxx 600: +1.4%

 

Headlines to Watch

Australia

  • January employment expected +20k
  • Unemployment rate seen steady at 4.1% (risk of uptick to 4.2%)
  • Labour market slack measures under close scrutiny

Europe

  • ECB Economic Bulletin for policy tone guidance
  • Consumer confidence trends amid slowing growth

 United States

  • Fed speakers Bostic and Kashkari for rate path clues
  • Jobless claims and trade balance data
  • Treasury yields and USD strength remain key drivers
Currency PairMid-market Rate
AUD/USD0.7044
AUD/NZD1.1805
AUD/JPY109.04
AUD/CNY4.8656
AUD/EUR0.5975
AUD/GBP0.5219
AUD/HKD5.5048

 

 

 

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