The Australian dollar plunged to the lowest level in more than a decade against a range of currencies today but now is trying to recover. As was expected, the Reserve Bank of Australia announced additional monetary stimulus. Meanwhile, employment data showed surprisingly good results.
The Canadian dollar today posted gains against the US dollar after the release of upbeat Canadian employment data in the early American session. The USD/CAD currency pair alternated between gains and losses, given that both the loonie and the greenback were weak overall.
The Australian dollar fell against almost all most-traded currencies today (with the exception of the New Zealand dollar) after the release of an employment report. While the employment figures were not that bad, the bigger-than-expected increase of unemployment made the currency unappealing to traders.
The euro today continued to trade near 3-year lows against the US dollar after the release of mixed GDP data from Germany and the greater euro area. The EUR/USD currency pair extended its losing streak, which has been in place since the start of the year, as the risk-off sentiment dominated the markets in the face of the coronavirus outbreak.
The Canadian dollar today fell against the US dollar following the release of mixed Canadian jobs data and the upbeat US non-farm payrolls report. The USD/CAD currency pair’s rally was also fueled by the decline in global crude oil prices, which dragged the commodity-linked loonie lower.
The US dollar rallied today following better-than-expected macroeconomic releases in the United States. Now, traders wait for tomorrow’s nonfarm payrolls.
The New Zealand dollar was little changed today as local markets were closed for a holiday. The currency did not show a clear trend yesterday either after the release of mixed employment data in New Zealand.
The US dollar demonstrated a rather good performance in January thanks to the risk aversion caused by the Wuhan coronavirus. But what to expect from the greenback during the first week of February and what factors will be driving it?
The Australian dollar rallied against all other of its most-traded rivals, even the Japanese yen, which itself was rather strong. The main reason for the Aussie’s great performance was a surprisingly good domestic employment report, which improved the outlook for monetary policy a bit. Even risk aversion prevailing on the market was unable to stop the Australian currency from rallying.
The Great Britain pound was the strongest major currency on the Forex market today. The reason for the sterling’s stellar performance was the employment report, which showed record employment among Britons.
