AUD/USD
One of the notable movers overnight was AUD following the significantly better than expected Australian jobs report. In terms of the report, the M/M employment change reading showed the biggest increase on record (121.0K vs. Exp. 15.0K (Prev. -0.3K). Nonetheless, the AUD/USD pulled off its best levels with the reading largely boosted by a surge in part-time jobs and as the USD-index continued to ebb higher. The move to the downside was then exacerbated by sceptical commentary regarding the significantly higher than expected figure with analysts at UBS saying the new job figure is like saying the number of new jobs in the US is 1.5 million, adding that it is a sample error. The AUD/USD continued its downtrend throughout European trade with RANsquawk sources also reporting US funds said to be selling the AUD/USD, with the AUD/USD then briefly breaking below 0.9100.
GBP/USD
Once again GBP was a key focus from the get-go after yesterday’s after-market Survation poll which showed 53% for “No” and “47%” Yes, with the poll subsequently lifting the GBP/USD by around 60 pips. However, despite the potential shift back in favour of the no vote, the GBP/USD is still some way off closing the gap from Monday’s open. Thereafter, the pair then succumbed to the broad-based USD strength, although still saw the session out in positive territory. Looking ahead, attention turns towards any further insight into the vote split in the Scottish referendum with the latest YouGov poll due for release later tonight although no official time has been reported at the time of writing.
USD/JPY
USD/JPY was yet again a key focus for FX markets with the weakness in USTs seeing the pair extend its recent gains amid favourable interest differential flows. During Asia-Pacific trade, the pair briefly broke above the 107.00 handle for the first time since mid-2008, although then ebbed lower after failing to make a substantial break above this key level, with profit-taking said to be a key factor behind the move lower. However, heading into the North American open, the pair managed to make a sustained break above 107.00 as interest differential flows once again came into play. Towards the end of the European session, gains were then trimmed amid comments from BoJ Govenror Kuroda who said he does not think there is any need for additional policy steps. Looking ahead, the pair will continue to remain a key focus with interest differential flows set to dictate the price action heading into next week’s widely anticipated FOMC rate decision where there Fed could alter their forward guidance.