All eyes are firmly fixed on the US employment report, a pivotal indicator driving market sentiment. A robust report is anticipated to bolster the greenback's strength, potentially reversing recent declines. Conversely, a disappointing outcome is poised to exacerbate the correction initiated since the February jobs report rally.
Yesterday, the dollar rebounded during the North American session, attributed by many to a flurry of Federal Reserve comments, although the interest rate market exhibited minimal reaction. Presently, the dollar exhibits a mixed performance against G10 currencies, with the Swiss franc notably softening.
Meanwhile, gold experienced a dip to approximately $2268 before bouncing back above $2290.
May WTI crude oil prices are consolidating marginally above $86.35 following a significant upward move observed yesterday.

Asia Pacific markets
Australia registered a trade surplus of A$122.7 billion in 2023, a decline from A$139.9 billion in the previous year, signaling a slower start to the current year. Notably, the February trade surplus, reported today, amounted to A$7.28 billion, falling short of expectations. Consequently, Australia's surplus for the first two months of the year is nearly 20% lower compared to the same period in 2023.

The Australian dollar traded within a narrow band below $0.6600 today, with potential for a decline towards the $0.6535 region in response to a robust US employment report.
Additionally, the US dollar weakened to approximately 150.80 against the Japanese yen after surpassing expectations in spending data.

European markets
The UK's manufacturing and services Purchasing Managers' Index (PMI) readings have surpassed the 50 threshold, indicating expansion, while the construction PMI also joined the fray with a 50.2 reading, marking its first time above 50 since August last year. Despite this positive trend, the swaps market reflects an increased likelihood of a June rate cut, reaching approximately 80%, a level unseen in two months.

Sterling remained within a narrow range below $1.2650 today, with the potential to slide below $1.2580 on favorable US data.
The euro retraced its gains and settled around the $1.0830 level, consolidating just below $1.0845.

American markets
As in previous months, a strong jobs report may spur a dollar recovery.
Canada is also set to release its March jobs data, although it typically takes a backseat to the US report.

The greenback demonstrated broad-based recovery during the North American session, extending gains and reaching new session highs today, with the US dollar climbing to CAD1.3580.