FX News - September 6: USD Strength Ahead of NFP Data

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The greenback showed strength against other currencies just ahead of the Nonfarm Payrolls announcement later today (12:30PM GMT) The rally was also fueled by a number of positive data that came from the US yesterday, including Initial Jobless claims which fell from 332K to 323K, better than the expected 330K.

ECB President Mario Draghi's dovish statement yesterday did not help the euro against the greenback, as the EUR/USD pair closed yesterday at 1.3117. It fell sharply from its peak above the 1.3210 level yesterday.

The EUR/USD pair is currently trading at 1.3119, with initial resistance seen at 1.3243, followed by 1.3277. Meanwhile, initial support is at 1.3182, followed by 1.3149.

The yen also failed to stop the greenback yesterday, as the USD/JPY pair is now back above the 100.00 zone, and finished yesterday's session off at 100.10.

The pair has continued its rally so far at the opening of today's Asian session. It is currently trading at 100.18, with initial resistance seen at 100.04, followed by 100.29. Meanwhile, initial support is at 99.53, followed by 99.28.

The aussie fell too against the greenback, as the AUD/USD pair closed at 0.9120. However, compared to the euro and the yen, the aussie fared a bit better, and is currently trading at 0.9127.

Initial resistance for the pair is at 0.9258, followed by 0.9281. Meanwhile, initial support is at 0.9107, followed 0.9084.

Aside from the Nonfarm Payrolls data, the US will come out with other employment data, including average hourly earnings and the unemployment rate. The former is expected to improve on both the MoM and YoY bases, while the latter is expected to remain flat at 7.4%. If the US shows positive job growth in August, then it could be seen as an even stronger sign that the start of QE tapering this month will be imminent.

By FX Strategy Team, Published on 5th of September 2013
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