Australian employment rate posted disappointing figures for jobs data after Fed’s expected hike in the interest rate with the Bank of Japan policy review ahead. Recent news revealed that the BOJ will be releasing a new and up to date policy views around noon Japan time.
Employment change figures in February showed an incremental drop of about 6,400, missing an expected gain of at least 16,000 with the unemployment rate ranging from somewhere in between 5.9 percent from 5.7 percent. The quarterly underemployment was still at 8.6 percent; according to Australian Bureau of Statistics “The underemployment rate is still at a historically high level for Australia, but has been relatively unchanged over the past two years”
The new policy review set by the Bank of Japan, the yen was down 0.10 percent at 113.28. The AUD/USD was also trading a tad lower; it is down by 0.18 percent at 0.7696. On the other hand, GBP/USD is currently trading at 0.05 percent to 100.31 opening the Thursday market.
While the U.S. dollar index at the morning market is trading heftily against a basket of currencies, losing momentum by at least 0.05 percent to 100.31. The whole market is expecting somewhere around the figures of 0.25 percent for the upcoming Federal Reserve Open Market Committee or FOMC.
FOMC noted that The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal fund’s rate; the federal fund’s rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal fund’s rate will depend on the economic outlook as informed by incoming data,”
USD Versus Fed’s Hike
The greenback slips by more than 1 percent overnight, while earlier trades on Thursday morning showed it losing 1.13 percent. The Federal Reserve’s recent actions to increase the interest rates by 0.25 percent a 0.75-1 percent range.
The greenback continues to lose momentum; metals are having a tremendous run in the past days. The gold out of all the metals increased by 2 percent or $24.10 to 1,224.90 an ounce, according to analysts from Accendo Markets “Gold has been a clear winner from the U.S. dollar’s sharp selloff following the Fed’s rate hike, as the precious metal halts its downtrend to post fresh 2-week highs. In an unusual bullish move for the non-yielding safe haven asset after a rate hike, this can be entirely attributed to the aforementioned USD weakness,”
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