USD heading for its first weekly loss this month, AUD advances after the job report

The USD is heading for its first weekly loss since the start of this month. It has fallen from its one-year high as investors are waiting for the scheduled tapering. JPY has continued its downward trend due to rising risk appetite on global stocks and rising commodity prices.

The riskier currency AUD has extended its gains after the job report, which aligns with expectations. The number of unemployed people fell by 138k. However, the unemployment rate showed an uptick to 4.6% from 4.5% in August. Investors didn’t punish the currency, as the numbers were within expectations. The Australian dollar is also sensitive to the key events in China, which posted mixed inflation numbers for September. CPI dipped to 0.7% (Y0Y), down from 0.8% beforehand. MoM CPI fell to 0.1%, missing the forecast of 0.3%. At press time, AUDUSD is trading at 0.7429, up 0.2%.