US dollar index hits two-week high amid positive economic data
2023.12.05 19:11
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WASHINGTON – The continued its upward trajectory today, reaching a two-week peak around the 104.00 mark, bolstered by a series of positive economic indicators. The American currency’s rise comes amidst a broader trend of strength for the greenback.
Key economic data released today highlighted a mixed picture of the US economy. The JOLTS Job Openings saw a significant drop to 8.73 million in October, suggesting a cooling job market. However, the ISM Services PMI provided a more optimistic view, outstripping forecasts with a rise to 52.7, indicating continued expansion in the service sector.
The performance of the US dollar has had notable effects on various currency pairs. The pair dipped below the critical threshold of 1.0800 after a continuous five-day decline. Similarly, the Australian Dollar weakened, with the falling past the significant level of 0.6550 and the hitting its lowest close since mid-autumn.
In anticipation of economic reports due tomorrow, markets are closely watching the US labor market, with ADP employment data and Q3 Unit Labor Costs report on the horizon. Additionally, global attention is turning towards Australia’s Q3 GDP figures following the Reserve Bank of Australia’s decision to pause rate hikes, and Eurozone retail sales numbers are set to be released alongside a positively revised Eurozone PMI report from November.
In commodities, gold prices experienced a downturn to a weekly low at $2,010 per ounce, while silver also faced selling pressure, sliding to $24 per ounce. Meanwhile, cryptocurrencies bucked the trend of traditional assets with surpassing $43K and breaking above $2,250, both reaching multi-month highs.
The Canadian dollar is also under scrutiny as climbs toward 1.3600 with markets anticipating that the Bank of Canada will keep rates steady at an unchanged high of 5%.
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