US Dollar Declines vs. Commodity Currencies on Signs of Recovery
The US dollar declined versus the
The University of Michigan index of the consumer sentiment in its revised edition showed the increase from 71.6 in November to 74.5 this month. The claims for the unemployment benefits in the US continued to decline, falling from 423,000 to 420,000 last week. The personal income in the US grew 0.3 percent in November, while the personal consumption rose by 0.4 percent.
The future reports may also provide evidences of the economic recovery. The experts predict that the Conference Board’s sentiment index would post the increase from 54.1 to 56.3 in November. The low market volatility also helped the investors’ risk sentiment to improve.
AUD/USD closed at 1.0042 after opening at 0.9990 and rising to the intraday high of 1.0065. NZD/USD closed at 0.7469 after it opened at 0.7401 and climbed as high as 0.7500.
If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.
Tags
AUD/USD, Consumer Confidence, Dollar, Economic Recovery, NZD/USD, Risk Appetite, Unemployment, United States, Volatility
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Earlier News About the US Dollar:
- Dollar Drops vs. Yen, Rises vs. Euro on US GDP & Home Sales (2010-12-22)
- Dollar Strengthens as Fears of EU Debt Crisis Weren't Eased (2010-12-18)
- Dollar Rises as US Economy Strengthens (2010-12-16)
- Dollar Strengthens on European Crisis & Favorable Fundamentals (2010-12-15)
- Dollar Falls on Talks About Additional Bonds Buying (2010-12-14)
1 Comment
What I find amazing is that people who study market triends don’t seem to understand that the dollar is based completely on commodities. They assume since the commodities rise and the dollar falls that there is no correlation. When the actual question should be if we added 4 trillion dollars of currency to the circulating US dollar how high will it drive commodities prices for US citizens in it’s dolution?
Since the USD is the world currency, it would be expected that a dolution of that currency through the addition of more dollars, would in turn drive up the cost of its base (commodities). This is due to investors avoiding direct investment in the currency and opting instead for those things which make up the currency itself. The investor move into commodities actually strengthens the value of the diluted dollar