The Aussie was quoted higher in early Asia on Thursday with jobs data ahead and trade data out of China also a key driver of the currency as a top trading partner.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 100.05, down 0.58%. AUD/USD traded at 0.7523, up 0.32%, while USD/JPY changed hands at 109.06, down 0.51% with tensions on the Korean peninsula in focus.
In Australia, the central bank will release its Financial Stability Review. As well, jobs data is expected to show the employment change for March added 20,000 workers, under a steady unemployment rate of 5.9%.
Also on Thursday, China reports trade data for March. Exports are seen up by 3.2% year-on-year in March with imports expected to surge 18% for a trade balance surplus of $10 billion.
Overnight, the dollar fell to session lows against a basket of major currencies on Wednesday, after President Donald Trump said the currency is getting too strong while geopolitical concerns continued to weigh on sentiment.
Trump told the Wall Street Journal on Wednesday, that he thinks the currency (dollar) is getting too strong and hinted that he may reappoint Janet Yellen to chair the Federal Reserve Board when her term ends in 2018, as he added “I do like a low-interest rate policy, I must be honest with you,”
It wasn’t the first time Trump expressed concern over the strength of the dollar, after he previously warned in January, that a soaring greenback has disadvantages for U.S. companies that do a lot of business abroad.
Trump’s comments came against rising geopolitical tensions, which has caused a flight to safety, as investors shun risk assets in favor of traditional safe-haven assets such as gold, U.S. treasuries and the yen.
Dollar denominated assets such as gold are sensitive to moves in the dollar – a slump in the greenback, tends to increase demand for the yellow metal, as it becomes cheaper for foreign buyers.
