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Most aspects of the US jobs data released on Friday morning disappointed expectations, but were unlikely disappointing enough to sway the Federal Reserve from its firm track towards higher interest rates through 2018 and beyond.
For more than a week, the US dollar has risen sharply as US government bond yields have surged – with the benchmark 10-year Treasury yield briefly topping 3% – while geopolitical risk perceptions have tentatively waned.
The official US jobs report for February was released on Friday morning, and despite a stellar reading for job creation – 313,000 jobs added in February against prior expectations of around 200,000 – the data was mixed overall, as wage growth was weak and the unemployment rate was slightly higher than expected.
February US jobs data, which will be reported on Friday morning by the US Department of Labor, is poised to take on increased importance for markets and investors.
Two primary catalysts for the return of sharply elevated market volatility emanated from the U.S. – Fed Chair Jerome Powell’s hawkish testimony in front of the US Congress, and US President Trump’s announcement regarding sizeable import tariffs on steel and aluminum.
The official US jobs report for January that was released on Friday morning was highly positive, easily beating expectations on both the headline data and, very importantly, wage growth.
For the past week, all eyes have been on the World Economic Forum in Davos, Switzerland, where US President Trump and others moved markets, especially the US dollar, with their comments.
While the US jobs report took center stage on Friday, especially since the headline non-farm payrolls data significantly disappointed expectations at 148,000 jobs added in December versus around 190,000 expected, the results of the less conspicuous Canadian employment numbers were no less surprising.
The official US jobs data for December will be reported on Friday morning by the US Department of Labor, and consensus expectations are pointing to a likely continuation of the strong job creation that prevailed through much of last year (September weather disruptions notwithstanding).
The US jobs report for November was released on Friday. Although the headline non-farm payrolls number came in significantly better than expected at 228,000 jobs added in November against a prior consensus forecast of around 200,000 jobs, wage growth turned out lower than expected.
The official US jobs data for November will be reported on Friday morning by the US Department of Labor, and consensus expectations are pointing to a likely continuation of the strong job creation that has prevailed through much of the year.
On Wednesday, the US dollar continued to surge within its recent rebound that extends back to early last week, as anticipation of US tax reform continued to mount and markets looked forward to key US events on the near horizon.
Looking ahead this week, several key data releases will likely have a significant impact on AUD/USD.
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