Traders Forgets Pessimism, Aussie Closes Higher
The Australian dollar closed higher on Friday as the optimistic mood on the Forex market returned currencies with higher yield to favor of traders. The Aussie closed lower versus the euro.
One story made the news headlines: US nonfarm payrolls. The employment report was very good, much better than even optimistic expectations, lifting mood of traders. Some people managed to found a bit of negativity even among the good news: employment growth means less chances for quantitative easing from the Federal Reserve. Yet the rising unemployment rate hints that it is too early to forget about possibility of more stimulus for the Fed.
There was another story, less discussed, but perhaps no less important. There are rumors that Spain is going to ask for a bailout. That means the European Central Bank may act sooner rather than later, supporting another speculation: that the ECB is ready to start a bond buying program.
AUD/USD rose from 1.0458 to close at 1.0567. AUD/JPY was higher from 81.82 to 82.92. EUR/AUD managed to outperform the Aussie, rising from 1.1644 to 1.1750, following Thursday’s drop to the record low.
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Earlier News About the Australian Dollar:
- Aussie Rallies on Growing Retail Sales & Trade Surplus (2012-08-02)
- Aussie Gains on Better-Than-Expected Housing Report (2012-07-31)
- Aussie Erases Gains on Faster Inflation Growth (2012-07-25)
- Global Data Negative for Aussie, Can It Find Support from Domestic Fundamentals? (2012-07-23)
- Australian Dollar Benefits from Rally on Stock Markets (2012-07-18)