The Australian Dollar enjoyed a tumultuous Thursday trading session as it reversed most of the gains earnt earlier in the week. Opening this morning at 0.7373, the Aussie was just another victim of a rampant Greenback which strengthened across the board.
Initially the day started well for the Aussie as trade balance and CPI news from China supported a buoyant AUD. The Aussie not only managed to hold above the 0.74 handle but break to the upside to briefly flirt with the 0.7450 resistance level. This was quickly unwound however, as traders took profit on their positions, making an about-face and going USD positive. There was no single, primary market catalyst that drove the market shift, but the move was certainly exacerbated by bullish comments by the Federal Reserves’ Evans. Evans was indeed particularly bullish on the US economy noting that fundamentals are “extremely strong”.
Wage Price Index (Tuesday), employment and unemployment (Wednesday) numbers to be released next week.