Yesterday, the Aussie Dollar fell against the USD after currency market reassessment of the global economic prospects. On Friday morning the currency traded at a high of 1.0686 the highest it has reached since October 31 this was as a result of the better performing equity markets. However, this strong showing did not last for long as it receded to 1.0611 down from the figure of 1.0636 it had posted on Thursday afternoon.
Depending on the US data to be released later, the AUD is expected to decline even further. Joseph Capurso, a Commonwealth Bank currency strategist explained that the local currency will be affected by the pending US GDP data. If the US GDP data is deemed to project a negative state of the world economy, then the AUD is expected to fell further as the AUSSIE is largely seen as a global economy barometer.
The EUR gained against the US dollar by 95 pips yesterday; however, it lost all this gain in the afternoon. The Euro appreciated to 1.3184 from 1.3089, this matched the interbank sentiment forecast of more than 15%. It receded slightly to 1.3106 at the close of the day. In the Australian market the Euro has further gone down on Friday morning to 1.3076. Traders in the US market will be looking and Germany’s Import Prices report as well as the EU17 money supply reports expected to be released at 7 and 9 GMT.
In other market around the world, the USD has shown mixed reaction to the impending gross domestic product report. This is expected to cause some volatility in the market but without any strong changes to major currencies. The continuing crisis in Europe will also have some effects on the USD today.
Most of the reports released in the US have shown signs of recovery. Mitul Kotech, the head of Global Foreign Exchange Strategy at Credit Agricole has projected that major Global Forex market will have a day of consolidation. The US GDP is expected to release data indicating a 3% growth in the GDP during the 4th quarter which will be up from the 1.8% growth in the third quarter.
Depending on the US data to be released later, the AUD is expected to decline even further. Joseph Capurso, a Commonwealth Bank currency strategist explained that the local currency will be affected by the pending US GDP data. If the US GDP data is deemed to project a negative state of the world economy, then the AUD is expected to fell further as the AUSSIE is largely seen as a global economy barometer.
The EUR gained against the US dollar by 95 pips yesterday; however, it lost all this gain in the afternoon. The Euro appreciated to 1.3184 from 1.3089, this matched the interbank sentiment forecast of more than 15%. It receded slightly to 1.3106 at the close of the day. In the Australian market the Euro has further gone down on Friday morning to 1.3076. Traders in the US market will be looking and Germany’s Import Prices report as well as the EU17 money supply reports expected to be released at 7 and 9 GMT.
In other market around the world, the USD has shown mixed reaction to the impending gross domestic product report. This is expected to cause some volatility in the market but without any strong changes to major currencies. The continuing crisis in Europe will also have some effects on the USD today.
Most of the reports released in the US have shown signs of recovery. Mitul Kotech, the head of Global Foreign Exchange Strategy at Credit Agricole has projected that major Global Forex market will have a day of consolidation. The US GDP is expected to release data indicating a 3% growth in the GDP during the 4th quarter which will be up from the 1.8% growth in the third quarter.
