Non-Farm Payrolls grew by 156,000 jobs in December. This was a print that missed the 175,000 expectation, but any negativity here was overshadowed by a sharp gain in wages:
USD Average Hourly Earnings m/m: 0.4% v 0.3% expected.
USD Non-Farm Employment Change: 156K v 175K expected.
USD Unemployment Rate: 4.7% v 4.7% expected.
Traders have taken this as an extremely hawkish sign for the Fed, being described as possibly the final piece of the labour market recovery puzzle, removing any final hurdle from the Fed stopping them from increasing interest rates through 2017.
As a result, the US Dollar bounced strongly, highlighted in the USD/JPY chart below:
For me, the USDX chart still has price sitting in a but of no man’s land between support and resistance levels, so isn’t worth posting. Check out the USDX triple top post from the end of December to see the major levels and where we are currently sitting in relation to these.
It’ll be interesting to see how high the pair can get before USDX hits that quadruple top resistance level but new highs are surely on the cards as we head through this week?
Trade forex today, with the best Australian forex broker Vantage FX.
Dane Williams – @VantageFX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.