The dollar fell sharply against the basket of major currencies after US Non-Farm payrolls unexpectedly fell.
Report showed only 156K jobs created in August, undershooting forecast for 180K new jobs and July’s figure was revised lower to 189K from initial 209K release.
In addition, Average Hourly Earnings rose by 0.1% in August, falling below forecast of 0.2% and well under 0.3% in July.
Downbeat jobs data are as disappointing factor for the Fed ahead of their policy meeting in September, when the central bank is expected to give initial signals about start of winding down its massive portfolio, as well as rising a big question mark above expectations for one more rate hike, seen likely in December.
Traders however hope that weak August data are temporary, as a number of seasonal jobs in August may temporarily affect the figure.
Markets need to digest the data and show more clearly the impact.
At the time of writing the Euro returned to 1.1915, pre-data levels, following spike to 1.1979 after release.
Cable eased from the session high at 1.2995, showing again strong hesitation ahead of 1.3000 barrier.
The greenback bounced near 110.00 zone after hitting post-data session low at 109.56, just ahead of strong support at 109.46 (daily Tenkan-sen / hourly cloud base).
Aussie dollar rallied near 0.8000 barrier against its US counterpart after release of US jobs data and maintaining positive ear-term sentiment as 0.8000 barrier is the last obstacle before key point at 0.8065.