Forex Today: Australia’s jobs report comes to the fore
There was no respite for the US Dollar’s (USD) march north on Wednesday. In fact, the Greenback has clinched its third consecutive day of gains, hitting at the same time fresh two-month highs.
The US Dollar (USD) continued its upward trend on Wednesday, with the US Dollar Index (DXY) reaching fresh two-month highs, surpassing the 101.00 barrier. The strong performance was fueled by solid US data and hawkish Federal Reserve communications. With the weekly Initial Jobless Claims, New Home Sales, Building Permits, and Q2 Current Account results due, attention was on the August labor report as a key event for Australia.
The flash PMIs for Australia's manufacturing and services sectors revealed contraction and slow expansion, respectively, exacerbating the pressure on the AUD/USD pair. Meanwhile, the BoJ increased its short-term interest rate target to 1.25%, signaling a shift towards normalizing monetary policy.
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