US Employment Report Helps Dollar to Gain While Asian Market Floats Around Three-Year High

Employment Report Helps Dollar

Asian stocks levitate around a three-year high on Thursday because of euro-area monetary policy decisions and job data indicating robust employment which kindles the hope that US nonfarm payrolls report would bolster investor’s confidence by proving the economy is getting up to the speed.

Morgan Stanley Capital International’s broadest index of Asia-Pacific stocks outside Japan stood at 499.88 on Thursday, which was a slight change from the three-year high of 500.26. The index reached at the three-year peak on Wednesday.

The US dollar made gains and Australian dollar slumped. The Australian dollar is now trading at 0.94 US dollar. The BDS index reported 0.1% by 7.16 a.m. in London. The Euro Stoxx 50 index and S&P 500 index reported little change. The precious metal stock dropped as Platinum fell from 9 months high and gold fell 0.3%.

For spread betters, the European market opened with a mix. The market forecasted Britain’s FTSE to open as high as 0.1% and Germany’s DAX to be 0.1% lower. The prediction for CAX of France.FCHI was effectively flat. The expectations regarding US economy’s momentum gain began after the payrolls processor Automatic Data Processing said private-sector recruitment in the US has reached to 1 year high. At the beginning of 2014, US economy was in a sluggish condition. Analysts are hoping the current forecasts will help the economy to boost.

A market strategist said, “The market is expecting to see another print north of 200,000 and no doubt sentiment will be riding high following this ADP reading.” A senior currency strategist called Sean Callow said, “If the ADP survey is indeed a harbinger of another strong payrolls report, then the U.S. dollar should enjoy a fresh wave of demand and knock Aussie towards 93 cents.”

As Asian equities are performing better, Tokyo’s Nikkei .N225 gained 0.4%. A senior technical analyst at Daiwa Securities of Tokyo said, “If the data shows that the U.S. economy is in good health, Japanese shares in the auto and technology sector will likely be bought.”

Euro didn’t change much against the dollar. Euro is currently trading at $1.3648, a drop of 0.15% from a day earlier.