The Australian dollar rallied this week, ignoring the negative fundamentals. In fact, the news was mixed, but the currency was generally paying attention to positive ones, shrugging off negative ones.
There were quite a few negative events for the Australian currency, including an interest rate cut and the report that showed slowing growth of gross domestic product. Yet the Aussie managed to gain even amid such negative influences. Of course, the Australian dollar continued to rally after good news, including the employment data that was much better than anticipated.
The news outside of Australia was also mixed. The outlook for Europe was fairly positive after Greece received a bailout and announced a bond-buyback program, but it worsened later. US nonfarm payrolls improved the market sentiment by the end of the week, allowing traders to hope that the Aussie and other currencies with higher yield will be strong at the start of the next week.
AUD/USD rose from 1.0426 to 1.0487 this week and the weekly high of 1.0514 was the highest since September 21. EUR/AUD fell from 1.2448 to 1.2325, following the rally to 1.2542 — the highest price since October 26. AUD/JPY climbed from 85.86 to 86.43, reaching the high of 86.69 this week — the highest rate since April 2.
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