The Australian Dollar to US Dollar (AUD/USD) exchange rate has declined greatly during the European session, following on from some highly positive US economic results.
The Australian Dollar (AUD) has declined notably during the European session, although domestic data recently has actually been favourable to the ‘Aussie’. This has included the AIG Performance of Construction Index for October rising from 51.9 points to 52.1 and the Reserve Bank of Australia (RBA)’s Statement on Monetary Policy providing plenty of cause for optimism; this was done by the RBA upgrading their 2016 year-end forecast around June from 2-3% to 2.25-3.25%.
The Australian Dollar has fallen by -0.5% against the Canadian Dollar (AUD/CAD), -1.4% against the Chinese Yuan (AUD/CNY) and -1.6% against the US Dollar (AUD/USD); its best performance has been a narrow trending against the New Zealand Dollar (AUD/NZD).
The US Dollar (USD) made phenomenal gains against all of its rivals during the European session on Friday, following on from the Change in Non-Farm Payrolls and Unemployment Rate results for October coming in. Although the latter fell from 5.1% to 5%, the former was the star of the show, rising up to 271k when the forecast had only been for a figure of 185k.
The US Dollar’s greatest gains included 1.3% against the Japanese Yen (USD/JPY), 1.6% against the Australian Dollar (USD/AUD), the Polish Zloty (USD/PLN) and the New Zealand Dollar (USD/NZD), in addition to a 2.3% triumph against the South African Rand (USD/ZAR).
With all of the week’s Australian and US results now out, next week will be the first source of further influential information for the pairing. Throughout the week, speeches from Fed officials including Federal Open Market Committee (FOMC) voting members will be delivered. As with all announcements from the Fed, those of a hawkish nature will be of far greater benefit to the ‘Buck’ than those that are overtly dovish in the eyes of investors.
Australia’s greatest contribution to the exchange rate will be the Employment figures due on Thursday; no predictions have been made, but given that the season of winter is fast approaching, it is likely that the number of employed persons will jump up due to the abundance of seasonal jobs now on the market.
The Australian Dollar to US Dollar (AUD/USD) exchange rate was trending in the region of 0.7035 and the US Dollar to Australian Dollar (USD/AUD) exchange rate was trending in the region of 1.4219 today.
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