Despite a huge miss in US non-farm payrolls, where the nation added 235k jobs versus 733k expected in August, most stocks on Wall Street[1] concluded the week higher. The tech-heavy Nasdaq[2] 100 outperformed the S&P 500[3] and more cyclically-sensitive Dow Jones. Expectations that the Fed may not taper this month boosted growth stocks. Meanwhile in Japan, the Nikkei 225[4] soared after Japan’s Prime Minister Suga announced his resignation plan, opening the door to new leadership as calls for more stimulus mount.
With that in mind, it was another terrible week for the US Dollar[5] as it underperformed virtually every G10 currency. The boost in market sentiment supported the growth-linked Australian and New Zealand Dollars. The Euro[6] also received a bid after Euro-area inflation data surprised higher at the beginning of last week.
Turning to commodities, precious metals like gold[7] and silver[8] also shined against the backdrop of a weaker US Dollar. XAU/USD[9] aimed for its highest close since the middle of June. XAG/USD shot upwards towards a near one-month high. Iron ore prices remain depressed, with fading Chinese demand woes still in play. Natural gas[10] prices soared, hovering near all-time highs.
Looking at the week ahead, the Australian Dollar[11], Euro and Canadian Dollar[12] are bracing for central bank rate decisions. The Reserve Bank of Australia (RBA), European Central Bank (ECB) and Bank of Canada (BoC) are on tap. Diverging economic situations could make for some volatility between AUD/USD[13], EUR/USD[14] and USD/CAD[15].
Financial markets are offline in the United States on Monday for the Labor Day
