Greenback slips on rising Fed rate cut bets <\/p>\n
The US dollar weakened overnight after the latest JOLTS report showed a sharper-than-expected drop in job openings.<\/p>\n
Vacancies fell from 7.36 million in June to 7.18 million in July, marking the first time since 2018 (excluding the pandemic) that openings were outnumbered by unemployed workers.<\/p>\n
Markets interpreted the data as a sign of softening labour conditions, increasing the likelihood of a weak non-farm payrolls print on Friday and boosting expectations of a Federal Reserve rate cut in two weeks.<\/p>\n
According to Bloomberg, the probability of a cut rose above 90%.<\/p>\n
Across markets, the British pound led gains, rebounding from the previous day\u2019s bond-driven losses.<\/p>\n
AUD\/USD rose 0.4%, while NZD\/USD added 0.2%.<\/p>\n
In Asia, USD\/SGD and USD\/CNH were both flat.<\/p>\n
AUD edges higher as local economy beats forecasts <\/p>\n
Australia\u2019s economy grew 0.6% in Q2, up 1.8% year-on-year, beating expectations and improving on previous figures.<\/p>\n
Household and government spending drove the gains, while a drop in public investment capped stronger growth.<\/p>\n
Exports, particularly from the mining sector, provided a solid boost.<\/p>\n
The Aussie is holding just above short-term support at the 21-day EMA of 0.6507, with additional support at the 50-day EMA of 0.6501.<\/p>\n
Traders are eyeing 0.6600 as the next key resistance level.<\/p>\n
China\u2019s services surprise lifts sentiment <\/p>\n
China\u2019s services sector accelerated in August, with the Caixin services PMI rising to 53, beating forecasts and last month\u2019s reading.<\/p>\n
The composite PMI also improved, climbing to 51.9 from 50.8.<\/p>\n
These upbeat private survey results contrast with recent official data that pointed to slower momentum.<\/p>\n
Despite the positive tone, USD\/CNH has ticked higher over the past three sessions, with momentum indicators like Bollinger Bands previously flagging oversold conditions.<\/p>\n
Resistance levels are seen near the 21-day EMA of 7.1599 and the 50-day EMA of 7.1741.<\/p>\n
Aussie recovers <\/p>\n
Table: seven-day rolling currency trends and trading ranges \u00a0<\/p>\n
Key global risk events <\/p>\n
Calendar: 31 August \u2013 5 September<\/p>\n
<\/p>\n
All times AEST<\/p>\n