|02:20 EDT||FX Update: The dollar traded slightly firmer |
FX Update: The dollar traded slightly firmer against the yen and euro, while lost ground to an outperforming Aussie dollar following a much better than expected Australian employment for December. AUD-USD rallied to a three-day peak of 0.8220, extending the recovery from yesterday's low at 0.8068 and contributing to a pretty choppy price action that's unfolded over the last 10 days. Australian employment rose 37.4k, well up on the expected 4.0k rise, and the unemployment rate tumbled to 6.1% from a revised 6.2% in November (was 6.3%). USD-JPY, meanwhile, lifted to a high of 117.94, two pips shy of yesterday's peak, extending the rebound from the low seen yesterday at 116.07. A 1.9% rebound in the Nikkei helped facilitate yen losses, while there was signs that 'Abenomics' policies remain alive and well with news that the BoJ is considering extending two lending programmes set to expire in March, according to Bloomberg sources. EUR-USD saw a slightly downside drift, returning to the 1.1760-70 area, remaining well within yesterday's range. BoE MPC member Sentence repeated the message of Governor Carney from a couple of days ago, downplaying the dive in CPI to 0.5% by arguing that long-term price pressures may not be disinflationary in the UK, and that transitional and long-term factors must be distinguished between.