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Lowe Sends Aussie Lower

FOREX

It was a typically subdued pre-NFP Asia-Pac session, with the AUD taking a hit as RBA Gov Lowe welcomed the depreciation of local currency, although he stated that policymakers are not targeting the exchange rate. Further deterioration in Sydney's Covid-19 situation may have added some pressure to AUD, making it the worst G10 performer.

  • USD garnered some strength ahead of today's NFP report, with the DXY rising past yesterday's peak to fresh weekly highs. The loonie was the second strongest G10 currency, diverging from its oil-tied peer NOK, with Canadian jobs report also coming up.
  • The final PBOC fix of this week fell in line with sell-side expectations, allowing spot USD/CNH to remain broadly directionless in rangebound trade.
  • While U.S. labour market data takes centre stage today, German industrial output and Canadian unemployment will also provide some interest. There are no notable central bank speakers today.

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