The dollar has surged in response to the results of the January US employment statistics. The number of employees increased to 517,000, more than double the market forecast of 190,000. The previous figure was also revised upward from 223,000 to 260,000. The unemployment rate fell unexpectedly to 3.4%, the lowest level on record. The labor force participation rate rose to 62.4% from the previous survey. Average wages rose 4.4% year-on-year, surpassing market expectations of 4.3%. The previous value was revised upward from +4.6% to +4.8%.
Following a series of strong results, the US 10-year bond yield jumped from around 3.38% to around 3.48%. Dollar-buying surged, and the dollar/yen exchange rate surged from the mid-128 yen range to the 130-yen range.
This is a surprise given the poor ADP employment figures.
Today, the USD will be bought back in a big way.
However, this week, we have not been able to ride the USD flow well, so we are choosing to buy the AUZNZD, which is easier to enter.