The Australian dollar is continuing to climb in today’s trading session, following on from last Friday’s surge after news surfaced that a meeting between US president Donald Trump and his North Korean counterpart Kim Jung Un was due to take place in the nearest future.
The Aussie dollar has suffered in recent times as investors chose to avoid the riskier currencies in favour of the US dollar and Swiss Franc among others.
If the meeting goes well and North Korea agree to begin the process of denuclearization the Australian dollar is likely to fall further out of favor with the market and more losses are expected.
The latest jobs report released last Friday is also bound to put the Australian dollar under pressure because after the release, the chances of the US Federal Reserve hiking interest rates this month grew to over 90 percent.
The non-farm payrolls figure released to the market showed the number of new jobs added the US economy sharply increased by 313,000 in February, according to the US Labor Department which marks the biggest increase in over 1.5 years.
Apart from lifting rates this month, the news is bound to keep the Fed on track to lift rates a total of 4 times this year which will boost the US dollar at the expense of currencies such as the Australian dollar.
"Although the unemployment rate ticked up and average hourly earnings growth slowed, the most important takeaway is that these numbers are strong enough for the Federal Reserve to raise interest rates later this month," said BK Asset Management managing director of FX strategy Kathy Lien
Activity of FIBO Group, Ltd. Company is regulated by the Financial Services Commission (FSC), registration number of the licence: SIBA/L/14/1063.
Trading on Forex market implies serious risk including the risk of loss of all the funds invested. Please, take into account that trading on the forex market isn’t suitable for all investors and traders.
Unfortunately the services of the company aren’t provided to residents of Austria, Great Britain, Iraq, North Korea and the USA.
Recommended Content
Editors’ Picks
EUR/USD suffers worst decline in months, stays below 1.0900
EUR/USD lost almost a hundred pips on Thursday, having the worst day in months. The Euro lost ground across the board while the US Dollar had a mixed performance after US data pointed to softer inflation and a more balanced labor market.
GBP/USD consolidates losses around 1.2600
GBP/USD pulled back sharply on Thursday amid a stronger US Dollar supported by higher Treasury yields. The pair found support above 1.2600 and is consolidating around 1.2620.
Gold eases as investors rush away from safety
Financial markets turned optimistic after US inflation eased further in November. Speculative interest increases bets of a shift in central banks' monetary policy. XAU/USD is in a bearish corrective decline in the near term, slide should remain limited.
Kyber exploiter asks for complete control of all assets after nearly $50 million exploit
Kyber Network, a cross-chain decentralized exchange and aggregator, was hit by an exploit that drained nearly $50 million in cryptocurrencies from its liquidity pools. The exploiter contacted the team, asking them to await a statement concerning a “potential treaty.”
Salesforce rally helps Dow Jones outpace NASDAQ, S&P 500 on Thursday
Salesforce (CRM) is the main story on Thursday. The enterprise software company utilized artificial-intelligence-based (AI) integrations in its product suite to grow profits and revenue for the third quarter.