The Dollar has been broadly stable for the second day running ahead of today’s release of US labour market and ISM manufacturing PMI data for January. Markets which have had to digest the Federal Reserve’s neutral stance on monetary policy await an update on the progress (if any) in ongoing trade negotiations in Washington between the US and China.
The AUD/USD cross remains somewhat volatile. It had been on an upward trend in recent weeks but corrected lower early in the Asian session following the release of a weaker-than-expected Caixin manufacturing print for China in January. It has however bounced back to 0.7260. The EUR/USD has followed a similar path in the past 24 hours, with no obvious reaction to Eurozone CPI-inflation data for January which were broadly unchanged from November and in line with analysts’ forecasts.
