USD falls from three-month high after non-farm payrolls and rising unemployment

USD fell from its three-month high on Friday, after data showed mixed results on employment. Non-farm payrolls increased by 850k, which was well above the forecast and above last month’s level at 583k. However, the unemployment rate unexpectedly rose from 5.8% to 5.9%. Average hourly earnings rose by 0.3%, lower than the forecast at 0.4%. Hourly earnings are frequently viewed as a signal of wage inflation. Lower-than-expected data indicated that inflation is below expectation. However, despite the decline, USD still posted a 0.5% weekly gain. Currently, DXY Index is trading at 92.33, up 0.11% since opening.

In China, growth has also slowed down. Services Sector PMI landed at 50.3, compared with the previous release at 55.1. The number is also the lowest since April 2020. USDCNY is currently down 0.16% since opening, trading at 6.4618.