The Australian dollar rose today on the speculation that labor market in the United States continue to improve. The currency was falling this week on the forecast that the Reserve Bank of Australia may perform quantitative easing.
Yesterday, the employment report from Automatic Data Processing showed that US employment continued to grow with steady pace last month. Tomorrow, non-farm payrolls are expected to confirm that, while the unemployment rate is expected to remain steady. Jobless claims report today is also expected to show a stable level of unemployment.
As for the economic environment is Australia itself, it wasn’t nearly as good as the one in the USA, leading to the speculation that the RBA will reduce interest rates next month. The central bank left the main interest rate unchanged during the policy meeting on April 3, but bank’s Governor Glenn Stevens said:
The Board’s view was also that, were demand conditions to weaken materially, the inflation outlook would provide scope for easier monetary policy.
AUD/USD rose from 1.0267 to 1.0302 as of 5:41 GMT today. EUR/AUD was down from 1.2796 to 1.2766. AUD/JPY traded near 84.70, while earlier it fell from 84.62 to 84.34.
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