USD jumps upon release of private payrolls, more attention is on today’s non-farm payroll

USD rose to a three-week high against EUR and a two-month high against JPY overnight, upon the release of private payrolls. Private payrolls added 978k jobs in May, beating the forecast at 650k. However, some investors think that private payrolls are often an unreliable guide to non-farm payrolls. Therefore, the market awaits the key data which will be released later today. On Thursday, the New York Fed said it would start to gradually sell its portfolio on corporate bonds ETFs by June 7. This is so far the first move to sell corporate bond holdings which were acquired during the pandemic. Investors suspecting that this will be followed by other states as well.

In APAC, NZD continues to decline against EUR. Investors are probably still digesting the surprise signal from RBNZ last week that, the interest rate may be raised in the second half of 2022. In the meantime, ANZ Commodity Price Index climbed 1.3% in May, primarily due to the strong uptrend in commodity prices.