[MARKET ANALYSIS] Choppy but contained FX trade as markets await economic data

DXY is flat intraday but resides in a current 98.497-98.690 parameter as traders await key US labour market data due ahead of Friday's official employment situation report; ADP's gauge of nonfarm employment is expected to print 49K in December vs -32K in November. JOLTS job openings are expected to fall to 7.61mln in November (prev. 7.67mln in October); in the October report, the quits rate fell to 1.8% from 2.0%, while the vacancy rate was unchanged at 4.6%. Elsewhere, the ISM Services PMI is seen inching down a little in December. Currently, the index is well within Monday’s 98.25-98.86 range, and on either side of its 100 DMA (98.59).
EUR/USD holds onto the prior day’s losses following softer-than-expected inflation from Germany yesterday, with the EZ-wide metric also unlikely to change the course for the ECB. Sticking with inflation, AUD/USD is choppy following overnight outperformance given softer-than-expected monthly inflation, but as the headline figure and the core reading remain sticky and above the RBA’s 2-3% target. USD/JPY found resistance at yesterday’s high and remains within that session's 156.30-156.80 parameter. Other G10s are largely uneventful and follow the choppy price action.