Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dollar Up, but Below One-Year High, AUD gains as Riak Sentiment Improves

Published 08/10/2021, 03:50
Updated 08/10/2021, 03:50

By Gina Lee

Investing.com – The dollar was up on Friday morning in Asia. However, the safe-haven dollar remained below a one-year high as risk sentiment improved. The riskier Australian dollar traded near the three-week high that it hit during the previous session, when it gained 0.55% against its U.S. counterpart.

The U.S. Dollar Index Futures that tracks the greenback against a basket of other currencies inched up 0.01% to 94.233 by 10:37 PM ET (2:37 AM GMT).

The USD/JPY pair was up 0.25% to 111.87. Japanese data released earlier in the day showed that household spending contracted by a higher-than-expected 3% year-on-year and 3.9% month-on-month in August. The adjusted current account was at JPY1.04 trillion ($9.33 billion) while the current account was at JPY 1.666 trillion.

TheAUD/USD pair inched up 0.06% to 0.7316 and the NZD/USD pair was up 0.34% to 0.6945.

The USD/CNY pair inched up 0.08% to 6.4502. China’s Caixin services purchasing managers index for September, released earlier in the day, was 53.4.

The GBP/USD pair inched down 0.01% to 1.3615.

The U.S. Senate voted on Thursday to temporarily lift the debt ceiling, thus averting a catastrophic debt default. Easing global energy prices also somewhat calmed stagflation concerns.

"The improvement in risk appetite favors pro-growth currencies, with safe-haven pairs the underperformers," National Australia Bank (OTC:NABZY) FX strategist Rodrigo Catril said in a note.

The Australian dollar has made "a decent go at breaking higher," but the test will be whether it can stay about $0.7315 following several failed attempts in 2021, the note added.

Investors also await the latest U.S. jobs report, which includes non-farm payrolls and is due later in the day. The data could impact the U.S. Federal Reserve's timetable for asset tapering, which it has said is likely to begin as soon as November 2021. The central bank could also hike interest rates in 2022.

Across the Atlantic, newly minted Bank of England Chief Economist Huw Pill said that inflation pressures were proving stickier than initially thought. His comments reinforced expectations for an interest rate hike by February 2022, and perhaps even as soon as 2021.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.