Fri, 04 Mar 2011 05:45:00 +0100

Forex: The calm before the NFP

FXstreet.com (Córdoba) - The FX market remains extremely quiet ahead of the US non-farm payrolls to be released at 13.30 GMT this Friday, with most pairs consolidating near their NY closing levels except for the South Pacific currencies that have lost further ground in Asia.

EUR/USD continues firm trading near its 4-month highs, consolidating around 1.3955/60, on prospects the ECB could hike rates next month, while GBP/USD is stagnant at the 1.6275 area. USD/JPY is holding onto gains above the 82.20 zone, former resistance now support, trading around 82.35 at time of writing.

The currencies linked to commodities are been pressured ahead of the job report. NZD/USD continues losing ground and has reached a fresh over 2-month low at 0.7365 as the IMF said it will likely cut the nation's growth forecast. Currently, NZD/USD is quoting around 0.7380.

The Aussie also fell after Prime Minister Julia Gillard said the AUD strength puts "burdens" on the manufacturing and tourism industries. AUD/USD is trading at 1.0130, after setting a low of 1.0112.