The day started off with Australian employment data, which again exceeded market expectations, as the employment levels jumped by 61.6 thousand jobs to 12.4 million in November, the largest addition to jobs since October 2015. It was expected to add only 19 thousand jobs. Unemployment has stabilized at 5.4%, its lowest level since 2013.
The Australian dollar has been rising since yesterday to continue its upwards trajectory following the employment data, reaching a record high against the US dollar for more than a month at 0.7673.
Most of the major currencies have rallied against the US dollar since yesterday, following the Federal Reserve's expected rate hike, as well as expectations of subsequent rate hikes in 2018 staying the same. During the press conference, Yellen stressed the strength of the labour market and that the delay in the arrival of inflation to the target has become a global phenomenon
After the dollar index stabilizing below 94, which represents the 61.8% Fibonacci level, the index is currently trading at 93.50 levels, and began forming the second shoulder of head & shoulders pattern which will be completed with the break of support at 92.58 targeting the 90 levels.
In the morning, the Swiss National Bank kept its expansion policy unchanged and interest rates remain unchanged at -0.75%. In the statement of monetary policy, the Bank affirmed the continued monitoring of the currency market and intervention when necessary, pointing to the decline in the value of the Swiss franc, although it remains somewhat at very high levels.
The Pound continued to rise with the start of morning trading despite the British government suffering a parliamentary defeat by changing the EU exit plan which would have a negative impact on the negotiations. Parliament voted in favor of amending a law allowing parliament to approve any final agreement with the EU.
This comes ahead of the monetary policy meeting today, and BoE decided to keep rates unchanged at 0.5% after being raised for the first time in 10 years last month.
In the Eurozone, PMI indicators continued to show positive signs of a strong economic recovery. The ECB is meeting today, and decided to keep rates unchanged, and markets now waiting the press conference after less than an hour, and may push the EUR higher as policymakers are not concerned about currency strength. The euro is the strongest performer this year, up more than 12.5% against the US dollar.
