The Australian dollar rallied today after the monetary policy statement of the Reserve Bank of Australia. While analysts had expected the central bank to demonstrate extremely dovish stance, the actual statement was considered to be either neutral or even slightly hawkish.
The Japanese yen was soft today after the Bank of Japan performed a monetary policy meeting and revised its economic projections. The losses were not particularly big, though.
The Canadian dollar performed fairly well today thanks to positive domestic macroeconomic data and rebounding crude oil prices. The currency fared far worse yesterday, falling after the monetary policy meeting of the Canadian central bank.
The New Zealand dollar gained on its most-traded rivals today, though not on the extremely strong euro. Such good performance was surprising, considering the risk-off market sentiment and the worsening outlook for New Zealand’s economic growth.
The Australian currency behaved basically similarly to its New Zealand counterpart today, falling during the Asian session after the release of macroeconomic data from China but rebounding by now. The currency also fell following the release of the Monetary Policy Statement by the Reserve Bank of Australia and the home loans report.
The euro today dropped significantly against the US dollar despite Angela Merkel‘s CDU party reaching a coalition deal with the social democrats in the early European session. The euro’s initial decline was largely triggered by weak German industrial production data released earlier today.
The euro today gained significantly against the US dollar after the European Central Bank released its economic bulletin. The US dollar was largely weaker against the euro on the back of increased skepticism surrounding the Republican tax reform bill, details of which are to be released later today.
