The Asian session was relatively calm and most major currency pairs were consolidating after much volatility on Friday following the US jobs report. The nonfarm payrolls showed more jobs were created in October, signalling a stronger economic recovery which bolsters the case for the Federal Reserve to taper stimulus as early as next month.
It appears there was no significant impact from the US government shutdown, and the US jobs numbers beat economist forecasts, boosting Treasury yields and the US dollar. Nonfarm payrolls increased by a surprisingly strong 204,000, versus expectations for a rise of only 125,000.
Economic data released during the Asian session today were from Japan which showed a current account surplus in September. It was bigger-than-expected at 587 billion yen, versus 400 billion forecast. The previous month’s surplus was 161.5 billion. The surprise was due to an increase in earnings and profits from foreign investments.
The yen strengthened slightly on the data, bringing USDJPY down to the key 98.90 yen level. The dollar was little changed against the euro, with EURUSD trading $1.3363. EURJPY slid 0.1 percent to 132.29 yen.
The Aussie was one of the biggest losers after the US jobs report on Friday, and today it hovered at $0.9385, having gone as deep as $0.9352 on Friday, its lowest in six weeks.