U.S. Nonfarm Payrolls Declines Less Than Econmists Expectations, Unemployment Rate...

Nonfarm payrolls in the world’s largest economy tumbled 54,000 in August after falling a revised 54,000 the previous month amid economists’ expectations of -105,000. At the same time, the unemployment rate rose to 9.6 percent from 9.5 percent in July. In turn, the Japanese yen, and the U.S. dollar lost ground against all major currencies as sentiment shifted gears. Meanwhile, U.S. futures pushed higher subsequent to the report, and indeed, risk appetite maybe the main theme going into the North American trade.

Taking a look at the breakdown of the report, the private sector jumped 67,000, with most of the gains in education and healthcare. Following the healthcare industry, professional services also increased. Also worth noting, the average hourly earnings rose 0.3 percent, which is up from 0.2 percent in July, while annualized earnings increased 1.7 percent.



Prepared by Michael Wright


USD/JPY Intraday Chart


Source: Intellicharts – Prepared by Michael Wright

Following the “better” than expected report, the USDJPY pushed higher and now looks poised to maintain its northern journey going into the North American trade.

USDJPY Daily Chart


Source: Intellicharts – Prepared by Michael Wright

Taking a look at the USDJPY daily chart, the pair has worked its way into a descending channel. As of late, the end of the trend may be on the horizon as the pair once again tests the upper bounds of the range. I