The major event this week was the release of US non-farm payrolls. Yet it turned out to be not that impactful as it prevented the US dollar from logging weekly gains. Meanwhile, the Reserve Bank of Australia surprised markets, performing an unexpected interest rate cut.
Non-farm payrolls showed a slower-than-expected increase of employment, weakening the dollar for a short while. Yet other parts of the report were decent, allowing the greenback to bounce shortly afterwards. And the currency ended the week higher against all of its most liquid rivals.
The Australian dollar was among the biggest losers as the RBA shocked markets by a surprise rate cut. Furthermore, the dovish statement of the central bank led to expectations of another rate reduction later this year.
EUR/USD opened at 1.1459 and rose to 1.1613 during the week (the highest rate since August 25) but retreated to end the week at 1.1405. USD/JPY rose from 106.21 to 107.12. AUD/USD sank 3.1% from 0.7596 to 0.7367. USD/CAD soared 3% from 1.2554 to 1.2919.
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