The anti-risk Japanese Yen fell while the sentiment-sensitive Australian and New Zealand Dollars traded higher alongside stocks in Asian trade. The MSCI Asia Pacific regional equity benchmark added nearly a full percentage point, echoing a surge on Wall Street triggered by a round of supportive US economic data.
From here, a lackluster offering on the European data docket puts the spotlight on the always much-anticipated monthly set of US labor market statistics. The economy is expected to have added 182k jobs last month, a slight slowdown from a 211k gain in March. The jobless is seen holding at 4.4 percent.
Leading survey data hints that a more optimistic outcome may be in store. Most interestingly, the pace of job creation in the service sector – the largest US employer by a long mile – appears to have accelerated in May after hitting a near-seven year low in the prior month.
If this proves telling, a strong outcome may revive speculation about continued Fed rate hikes to follow after this month’s all-but-certain 25 basis point increase. Needless to say, that would bode well for the US Dollar. At this stage, investors see a 50/50 chance of a third increase by year-end.
Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
