The dollar held firm ground overnight trading between 1.5446 and 1.5482. Yesterday’s data came out slightly better than expectations: ISM manufacturing index was flat at 48.6, better than a decline. Weekly jobless claims rose more than expected, to 380,000 versus a consensus of 365,000. Core PCE prices rose 0.2%m/m, pointing to a possible aggressive Fed stance against inflation in the medium-term. The Non-Farm Payrolls announcement is the highlight of the day. The market is anticipating a 100,000 drop and a 0.2% rise in unemployment to 5.3%.

Australian retail sales came out better than expected at 0.5%m/m versus a consensus of 0.3%m/m. The RBA is closely monitoring real demand and consumption, and with commodity prices retreating, the AUDUSD pair may face large downside pressure.