Aussie Benefits from Australia’s GDP, US & China’s Manufacturing
Wednesday, September 1st, 2010
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 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.