Forex Today: AUD sell-off extends into Asia, All eyes on NFP

Broad based US dollar strength remained the key underlying theme in Asia, the sentiment around the buck remains underpinned by firm US data, tax reforms progress and hawkish Fedspeaks. The USD index recorded fresh seven-week tops just shy of 94 handle, knocking-off most majors into multi-week troughs. The Aussie was the weakest of all, in the wake of the latest RBA rate cut talks.

Among other related markets, the commodities’ prices steadied, while the Asian stocks also traded cautiously ahead of the key US payrolls data due on the cards later today.

Main topics in Asia

UK PM May should call a leadership contest, former party chairman says

Conservative Party chairman Grant Shapps said on Friday that British Prime Minister Theresa May should call a leadership election and as many as 30 of her lawmakers want her to go.

Kashkari not under consideration for Fed chair, official says

According to an administration official, President Donald Trump is currently not considering Neel Kashkari, Head of Minneapolis Fed to be the next chair of the Federal Reserve.

Dollar Index clocks fresh 7-week high in Asia

The American dollar clocked a fresh 7-week high of 94.02 in Asia against the basket of currencies on US tax reform progress and in anticipation of a better-than-expected payrolls release.

RBA is still not ruling out rate cut - WSJ

As per Wall Street Journal (WSJ) report, the Reserve Bank of Australia (RBA) board member Ian Harper sees scope for interest rate cuts if consumption across the economy loses momentum entirely.

Key Focus ahead

Markets eagerly await the release of the US labour market report, as the EUR calendar remains pretty light amid a lack of first tier economic releases. However, the German factory orders data could offer some impetus to the EUR traders. Meanwhile, the BOE MPC member and Chief Economist Haldane’s speech will also hog the limelight in Europe.

The NA session remains action-packed, with the key employment numbers from Canada and US slated for release. Also, of note will be the Fedspeaks from Dudley and Kaplan. Nonfarm Payrolls Preview: sour numbers to have limited impact of Fed's decision

EUR/USD: Bears target Aug lows of 1.1662 ahead of NFP?

The overnight recovery attempts failed near 1.1715 levels on multiple occasions, leaving EUR/USD highly vulnerable ahead of the all-important US payrolls data due later today.

US: NFP Preview – Goldman Sachs

Goldman Sachs Analysts offer their thoughts on what to expect from today’s US labor market report due out at 1230GMT.

GBP/USD slammed below 1.3100, what’s next?

Having breached 1.3100 levels for the first in four-weeks in Asia, the GBP/USD pair entered a phase of consolidation, as investors brace for the US NFP report for the next direction.

NFP Preview: Will USD/JPY break above 113.00?

The USD/JPY pair could see a convincing break above the 113.00 handle if the NFP beats estimates and the wage growth numbers match estimates/beat estimates.