Will USD weaken regardless?
Friday nonfarm payrolls came in way below expectations, in fact, payrolls only rose by 74K rather than the expected 175k. Although this still represents an improvement for the US economy, it also means that better figures were priced in and so we saw a price adjustment with USD falling across the board. Another way of looking at this is that risk sentiment is being supported as weaker payrolls eased concern that the Fed will accelerate the pace of tapering.
Consumer price data dominate the week’s calendar with releases from the Eurozone, Germany, France, Italy, India, the UK and US. In Australia, December labour force data will be studied carefully to see if there is an interest rate cut in the RBA’s future.