The all-important US jobs report came in much stronger than expected overnight helping the US dollar to gain for a second day.<\/p>\n
The June non-farm employment report came in at 147k new jobs versus forecasts for 110k jobs. The unemployment rate fell from 4.3% to 4.1%.\u00a0<\/p>\n
The greenback gained on the news with the USD index climbing from three-year lows for the second day. The USD\u2019s biggest gains were against the euro and Japanese yen.<\/p>\n
Across APAC, the Aussie and kiwi were only moderately lower with both the AUD\/USD and NZD\/USD just off the eight-month highs seen earlier in the week.<\/p>\n
Similarly, the USD\/SGD and USD\/CNH climbed from recent lows.<\/p>\n
FX markets might be quieter going into the weekend with US markets closed for the Fourth of July holiday tonight.<\/p>\n
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Aussie trade gap widens, pair tests resistance<\/strong><\/p>\n Australia\u2019s trade surplus shrank in May, dropping to AUD2.238 billion from a revised AUD4.859 billion in April, according to the Australian Bureau of Statistics.<\/p>\n The outcome surprised many, landing well below the expected AUD5 billion surplus. Exports weakened while imports picked up speed, pushing the balance lower.<\/p>\n AUD\/USD is now hovering near the top of its 30-day range.<\/p>\n The next big hurdle remains 0.66, a level we\u2019ve flagged as a key psychological threshold.<\/p>\n Key support lies on 21-day EMA of 0.6518 and 50-day EMA of 0.6468.<\/p>\n Yuan steadies as China\u2019s services slip and exports contract<\/strong><\/p>\n China\u2019s services sector lost momentum in June as the Caixin Services PMI slipped to 50.6, down from May\u2019s 51.1 and missing the 50.9 forecast.<\/p>\n It was the weakest reading in nine months, weighed down by slower new business growth amid global headwinds.<\/p>\n Export services took a hit, shrinking for the second straight month at the fastest pace since late 2022.<\/p>\n On the bright side, the Composite PMI climbed to 51.3 in June from 49.6, hinting at some improvement despite mixed economic signals.<\/p>\n CNH held steady overnight, as market focus shifted to unfolding developments in the UK.<\/p>\n Key resistance levels for USD\/CNH are at the 21-day EMA of 7.1767 and 50-day EMA of 7.2004.<\/p>\n Greenback higher after strong jobs report \u00a0<\/strong><\/p>\n Table: seven-day rolling currency trends and trading ranges \u00a0<\/p>\n Key global risk events<\/strong><\/p>\n Calendar: 30 June \u2013 4 July<\/p>\n All times AEST<\/p>\n All times AEST<\/p>\n <\/p>\n
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