Forex Today: AUD shrugs-off soft jobs, ECB decision in focus

Forex Today: AUD shrugs-off soft jobs, ECB decision in focus

Two factors remained in play during today’s Asian session, with Fed Yellen’s hawkish remarks underpinning risk sentiment, while at the same time boosted the greenback across the board. However, USD sellers continued to lurk, restricting further upside in the USD index.

Data-wise, the Australian jobs report came in a tad softer and dragged the Aussie lower in a knee-jerk reaction. However, AUD/USD quickly regained ground and staged a solid rebound beyond 0.75 handle.

Next of relevance for the European markets remain the ECB monetary policy decision, with all eyes on Draghi’s presser, anticipating any hawkish talks from an otherwise dovish central bank Chief.  Overall, The European Central Bank (ECB) is expected to keep its key policy settings unadjusted later today. While the NA session holds the releases of US economic data, including the building permits, jobless claims and Philly Fed manufacturing index.

Main topics in Asia

Australia's Dec jobs report: Modest rise in full time employment, jobless rate ticks up

Australia's employment report came quite soft, judging by the modest rise in full time employment. While the total change was 13.5k vs 10k exp.

China's holdings of US Treasuries fall by most since 2011

The latest data published by the PBOC overnight showed that China's holdings of US Treasuries continue to fall for the sixth straight month in Nov, marking the biggest drop since 2011.

Nikkei rebounds, rest of Asia little changed ahead of ECB

The Asian markets had a positive start to the day, with the Japanese stocks leading the advances, tracking an upbeat close on the Wall Street overnight.

Key focus for the day ahead

EUR/USD better bid near 5-DMA ahead of ECB

The EUR/USD pair steadies in early Europe, after having caught a fresh bid-wave last hours, as markets turn cautious and refrain from placing any directional bet on the EUR ahead of key risk event for today – the ECB monetary policy decision.

Goldman Sachs: Q4 improvement in full-time employment will alleviate RBA concern

Economist at Goldman Sachs provides a brief insight on the future policy course of the RBA, particularly in light of today’s Aus jobs report.

BOJ expected to lift GDP forecast for fiscal 2016 and 2017 - Nikkei

Japanese daily, the Nikkei, came out with a brief preview of the BOJ quarterly economic outlook report, which will be accompanied by the monetary policy decision scheduled on Jan 31st.