AUD/USD Modestly Gains During Friday’s Asian Session, Traders Eye US NFP

10 and one 10 us dollar bill

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  • Aussie Dollar gains on cooling US job market signs, amid geopolitical tension.
  • Fed's mixed signals reflect caution in policy easing, considering inflation, growth.
  • Australian trade, US job data ahead, crucial for AUD/USD direction amid global economic scrutiny.

The Australian Dollar posted solid gains of more than 0.30% on Thursday against the Greenback after economic data from the United States (US) indicated the labor market is cooling. Federal Reserve’s officials crossed the newswires, giving mixed signals, despite agreeing they would ease policy at some point. The AUD/USD trades at 0.6582 as Friday’s Asian session begins.

Scottish US jobs data, boosted the Aussie’s Dollar

 Risk-sensitive currencies suffered a retracement late in Thursday’s session amidst rising geopolitical risks following Israel’s attack on Iran's embassy in Syria. US Treasury yields posted back-to-back days of losses, while the Greenback is virtually unchanged at 104.20.

US jobs data was soft, as more Americans than expected applied for unemployment benefits. Initial Jobless Claims for the last week rose to 221K, exceeding estimates and previous numbers of 214K and 212K, respectively. Further data revealed the US trade deficit widened in February, missing estimates and January’s print.

Fed officials' remarks on Thursday

Federal Reserve officials were active on Thursday, grabbing some headlines. Firstly, Philadelphia Fed Patrick Harker said that inflation is too high, and was followed by Richmond Fed President Thomas Barkin. He said he’s optimistic about achieving a soft landing, adding that tight policy would slow down the economy.

Moreover, Chicago’s Fed Austan Goolsbee said the Fed’s dual mandate risks are in better balance, adding that keeping restrictive policy for too long could weigh on employment. Recently, Minnesota’s Fed Neil Kashkari commented that he doesn’t see a reason to cut rates with a strong economy while ditching one rate cut, eyeing just two.

Lastly but not least, Cleveland’s Fed Chair Loretta Mester said she thought growth would be above trend this year and added that the rhythm of lowering inflation would be slower than last year.

Aussie’s and US economic dockets

The economic calendar will feature Australia’s Balance of Trade for February, which is expected to print a surplus of A$10.4 billion, below last month’s A$11.027 billion. On the US front, traders brace for March’s Nonfarm Payrolls figures, with the jobs data expected to show the economy added more than 200K jobs to the robust economy. The Unemployment Rate is foreseen to stand pat at 3.9% YoY; while Average Hourly Earnings could rise in monthly figures, but edge lower in the twelve months to March.

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