Ekonomické zprávy

Asian session review: the US dollar is showing positive dynamics

TimeCountryEventPeriodPrevious valueForecastActual
01:30AustraliaUnemployment rateApril3.5%3.5%3.7%
01:30AustraliaChanging the number of employedApril61.125-4.3

During today's Asian trading, the US dollar edged up slightly against the major currencies, returning to a 7-week high, while investors watched the news on the US debt ceiling.

The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.08% to 102.97.

Yesterday, President Joe Biden and top U.S. congressional Republican Kevin McCarthy stressed their determination to conclude a deal on raising the national debt ceiling in the near future. While this news eased concerns about an unprecedented default on American debt, a cautious mood tempered the risk appetite.

The Australian dollar fell 0.2% against the US dollar on the back of weak data on the Australian labor market. The Australian Bureau of Statistics said employment unexpectedly fell in April and the unemployment rate rose, a sign that the red-hot labor market may be cooling, bolstering the case for a pause in interest rate hikes next month. The number of employed decreased by 4300 people after an increase of 61100 people in March. Economists had expected an increase of 25000 people. The unemployment rate rose to a three-month high - to 3.7% from a near 50-year low of 3.5% in March, while analysts expected unemployment to remain at 3.5%. However, the number of hours worked increased by 2.6% compared to March. The Reserve Bank of Australia (RBA) has already raised interest rates by a total of 375 basis points, to 3.85%, including an unexpected increase earlier this month, as it warned of the risks of raising the inflation forecast. Inflation, which was 7%, is projected to return to the upper limit of the bank's target range of 2% to 3% only by mid-2025.

The Chinese yuan fell 0.25% against the US dollar, reaching its lowest level since December 2022 amid geopolitical tensions and more signs of China's post-COVID recovery losing steam.

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