Forex News

The Australian dollar strengthened today as the pace of Australia’s economic growth was fastest in three years and after the reports showed that the manufacturing in the US and China expanded faster than predicted.

The Canadian dollar rebounded today as the improving risk appetite pushed the stocks and crude oil higher and increased the appeal of the currencies linked to the economic growth.

The US dollar fell today against the euro and the Japanese yen as the Chicago Business Barometer fell more than estimated and on the signs that the Federal Reserve won’t raise the interest rates. The Fed also failed to provide the clear plan to add more stimulus to support the US economy.

The Canadian dollar extended its decline for the second day as the poor macroeconomic data continues to undermine the attractiveness of the currency to the global investors. This month can be the worst for the Canadian currency since June 2009.

The Canadian dollar fell today as the macroeconomic data slashed the forecasts for Canada’s economic expansion and curbed the demand for the Canadian currency. This month can become the worst month for the loonie since May 2010.

The speculation that Japan’s policy makers wouldn’t be able to limit the yen’s gains pushed the New Zealand dollar down against the Japanese currency; the kiwi (as the NZD nicknamed) also fell against the US dollar as New Zealand trade balance posted the deficit for the first time in seven months.

The US dollar posted a mixed week against the other currencies on Forex, as the investors didn’t seem to be certain of which direction to choose on worsening of the economic situation and intervention threats from Japan.

Both Australian and New Zealand currencies benefited from the speculations that the Japanese authorities will have to use currency intervention to hold down the yen’s growth.

The Canadian dollar continued its downward fall against the USD today, as the Forex traders expect no interest rate hike from the country’s central bank when it meets next time in two weeks.

The Australian dollar fell against all of its major counterparts at today’s Forex market opening, as Australia may be left without a majority government for the first time since 1940. The Aussie has immediately entered an uptrend after this negative opening.