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EUR/USD and AUD/USD Update – Treasuries Climb as European Data Damp Economic Growth Outlook



Good day forex traders and readers.

The EUR/USD and AUD/USD are both easing off the highs as an atmosphere of risk aversion seems to have enveloped the markets. Investors are worried of a Syrian crisis as progress has yet to advance. Euro area data weakened outlook too. Furthermore Australia posted disappointing jobs data causing further negative sentiments. Find out more below :

Treasuries rose, pushing yields lower for a second day, as data showed euro-area industrial production contracted more than economists forecast in July, boosting demand for the safety of government debt.

Benchmark U.S. 10-year note yields dropped after rising last week to the highest level since July 2011 amid speculation the Federal Reserve may slow its purchase program as the U.S. economy improves. The Fed will discuss the program next week. A report tomorrow is forecast to show retail sales advanced by 0.5 percent in August, up from 0.2 percent the previous month. The U.S. will sell $13 billion of 30-year bonds.

“We had IP numbers that were not so pleasant out of Europe,” said Jim Vogel , head of agency-debt research at FTN Financial in Memphis, Tennessee. “Now we have to wait for Europe a little bit, and that makes tomorrow’s retail numbers very important as well.”

The benchmark 10-year yield fell three basis points, or 0.03 percentage point, to 2.88 percent at 9:18 a.m. New York time, according to Bloomberg Bond Trader prices. It reached 2.87 percent.

Thirty-year bond yields dropped four basis points to 3.83 percent.

Yields briefly cut their decline after Initial claims for unemployment benefits in the U.S. unexpectedly dropped as two states upgraded computer systems.

Claims fell by 31,000 to 292,000 in the week ended Sept. 7, which also included the Labor Day holiday, according to Labor Department data released today in Washington. The median forecast in a Bloomberg survey called for an increase to 330,000 applications. An agency spokesman said that the upgrades played a major role in the drop in claims.

To contact the reporter on this story: Susanne Walker in New York at swalker33@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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