Forex Today: Aussie rescued by domestic data; NFP, Canadian jobs in focus

The US Dollar traded with mild weakness in a generally quiet Asian session on Friday. News report that special counsel Robert Mueller impaneled a grand jury to investigate allegations of Russia’s interference in the 2016 elections was seen weighing on the greenback. Meanwhile, the Australian Dollar benefitted from slightly better-than-expected retail sales figure, which helped negate early losses led by the RBA’s Statement of Monetary Policy (SoMP).

Main topics in Asia

Japan real and nominal wage pay drops, to weigh over consumption

The labor ministry data released today showed nominal cash earnings fell an annual 0.4% in June, the first decline since May 2016. 

RBA’s Harper: AUD's recent surge threatens to hit the economy hard

The Australian Press reported the Reserve Bank of Australia (RBA) board member Ian Harper’s comments delivered overnight, as he expressed his concerns over the impact of the recent appreciation in the Aussie dollar on the economy.

RBA’s SoMP: Further rise in AUD would lower economic growth, inflation

The Reserve Bank of Australia (RBA) released its quarterly Statement of Monetary Policy (SoMP) on Friday

AUD/USD - Upbeat retail sales cap losses, RBA trims GDP forecasts

A slight beat on the retail sales figure is helping Aussie avoid sharp losses after the RBA trimmed GDP forecasts for 2017 and cautioned markets about the negative effect of the strong Aussie dollar. 

Key Focus ahead

As the post BoE volatility settles, major currency pair held within a narrow trading range and investors now look forward to the closely watched NFP report, due for release later during early NA session. Meanwhile, the release of Canadian trade balance and employment details would also be looked upon for any follow through recovery for the USD/CAD major. 

GBP/USD consolidates the BOE-led sell-off, eyes NFP for next direction

GBP/USD extended its overnight consolidative mode into Asia, as the bears take a breather from the dovish BOE induced sell-off ahead of the highly-influential US payrolls data.

EUR/USD - Treasury yield curve, US-German yield spread signal USD weakness, Is 1.20 on the cards?

Monthly 50-MA is a tough nut to crack - The EUR/USD spot clocked a high of 1.1893 yesterday, but failed for the second day to end the day above the monthly 50-MA level of 1.1871. 

Treasury yield curve is flattest in a week

The Treasury yields fell to more than one-week lows and the yield curve between five-year notes and 30-year bonds flattened to 101 basis points, the lowest since July 25 after the Bank of England [BoE] pushed out the odds of the first rate hike to 2018 and the US data disappointed expectations.