Wall Street traded mixed on Thursday after initial jobless claims data raised concerns over the health of the US labour market amid the ongoing pandemic.
After a strong start to the month momentum is slowing as investors evaluate the economic recovery. Initial jobless claims rose to 793k above the 757k expected.
The US Dollar weakened further as the DXY dropped below 90.4. after Chair Jerome Powell reinforced the Fed’s accommodative stance.
China and Hong Kong’s equity markets will remain closed due to the Lunar New Year holiday, which could mean lower trading volumes
The economic calendar for the coming week is light. On Friday Indian inflation data for January along with manufacturing and industrial production figures for December will be released. The Indian Rupee could strengthen against the Greenback, but a weaker CPI print could raise RBI rate cut bets.
The Australian Dollar trading broadly higher AUD/USD and AUD/NZD trade near multi-week highs. Aussie-Dollar strength comes following dovish comments from RBA board member Ian Harperwho indicated that the central bank could extended QE further if necessary. Even so the Aussie could have been focusing on risk trends and on the weaker Greenback.