2020.08.0714:54:00UTC+00Solid U.S. Jobs Data Buoys Dollar

The U.S. dollar spiked higher against its major counterparts in the European session on Friday, as a data showed that U.S. jobs growth improved more than forecast in July, suggesting a continued recovery in the labor market despite the virus outbreak.

Data from the Labor Department showed that employment rose by 1.763 million jobs in July after climbing by a downwardly revised 4.791 million jobs in June.

Economists had expected employment to rise by 1.6 million jobs compared to the 4.8 million job spike originally reported for the previous month.

The unemployment rate fell to 10.2 percent in July from 11.1 percent in June. The rate was expected to drop to 10.5 percent.

Talks between White House officials and Democratic leaders on a new coronavirus-aid package stalled late Thursday, with President Donald Trump threatening to issue an executive order on some of the provisions of the deal.

The two sides are at odds over the $600/week unemployment benefits that expired last Friday.

The currency was trading higher against its key counterparts in the Asian session, as U.S. President Donald Trump's move to ban transactions with China's tech giant Tencent and ByteDance dampened the market mood.

The USD/CHF pair gained 0.6 percent, approaching a 3-day high of 0.9155. At yesterday's trading close, the pair was quoted at 0.9097. Immediate resistance for the dollar is likely seen around the 0.93 level.

The greenback added 0.4 percent to a 2-day high of 105.87 against the yen, after having dropped to 105.48 at 2:00 am ET. The pair had closed Thursday's deals at 105.54. The greenback may face resistance around the 107.5 region, if it gains again.

Data from the Cabinet Office showed that Japan's leading index increased in June and labor cash earnings declined at a softer rate.

The leading index, which measures the future economic activity, rose to 85.0 in June from 78.3 in May.

The greenback was up by 0.9 percent against the euro, at a 3-day high of 1.1768. The pair was worth 1.1876 when it closed deals yesterday. Next key resistance for the greenback is found around the 1.15 level.

Data from Destatis showed that German exports and imports grew at faster rates in June.

Exports advanced 14.9 percent on month, following May's 8.9 percent increase. Shipments were forecast to grow 13.3 percent in June.

The greenback registered a 0.8 percent rise against the pound to hit a 3-day high of 1.3031. The GBP/USD pair had ended yesterday's trading session at 1.3142. Further rally in the currency may challenge resistance around the 1.25 region.

Data from the Lloyds Bank subsidiary Halifax and IHS Markit showed that UK house prices increased for the first time in five months in July driven by pent-up demand.

House prices grew 1.6 percent on a monthly basis in July after staying flat in the previous month. This was the first rise since February.

After falling to 1.3282 at 5:00 pm ET, the greenback turned higher against the loonie, touching a 3-day high of 1.3383. The greenback was trading at 1.3302 a loonie at yesterday's close. Continuation of the greenback's uptrend may lead it to a resistance around the 1.35 region.

The greenback firmed to a 2-day high of 0.7172 against the aussie, up by 1 percent from a 1-1/2-year low of 0.7243 seen at 8:30 pm ET. The greenback was worth 0.7235 per aussie at Thursday's New York session close. The greenback is likely to locate resistance around the 0.68 region.

In its quarterly Statement on Monetary Policy, the Reserve Bank of Australia said that Australia's economy is set to log a slow recovery given the ongoing spread of the coronavirus and the response to contain it.

According to baseline scenario of RBA, GDP is expected to contract by around 6 percent over the year to December 2020, but then grow by around 5 percent over 2021.

The greenback reached as high as 0.6611 against the kiwi, setting a 3-day high. This marked a 1.1 percent gain from yesterday's closing value of 0.6687. Should the currency rallies again, 0.64 is possibly seen as its next resistance level.