Canadian dollar is experiencing very choppy trading today, moving between gains and losses against major counterparts as traders and investors try to figure out what to do next.

The eurozone continues to show weak data readings, and many expect the recession in the eurozone to last through the rest of the year. However, even so, the euro is still gaining against the US dollar. Even with the current “risk off” environment, euro is heading higher.

The Australian dollar slumped today, reaching the lowest level in a year against the US dollar, as China’s manufacturing contracted this month and the US Federal Reserve hinted that quantitative easing may be reduced.

The US dollar was volatile today as Forex market participants were trying to interpret the words of Federal Reserve Chairman Ben Bernanke and to guess whether the central bank will remove stimulus.

Euro is gaining ground today, heading higher as Ben Bernanke’s testimony to Congress gets under way. Expectations of loose monetary policy in the United States are helping the euro today.

The US dollar fell against the euro today on speculations that the Federal Reserve will maintain its stimulus program. The currency edged higher versus the Great Britain pound and the Japanese yen.

Japanese yen is mostly lower today, following an earlier rally. Comments from a government official sent the yen a little higher against its major counterparts, but now the yen is settling down into weaker territory as the fundamentals are considered.

Canadian dollar is losing ground today, dropping as the the US Federal Reserve considers reducing its economic stimulus efforts. It’s also not helping the loonie that oil prices are dropping again.

The Australian dollar fell against its US peer today after the Reserve Bank of Australia released the minutes of its last policy meeting. The drop was small, however, and the currency gained against the Japanese yen at the same time.

The US dollar recovered a bit today after yesterday’s losses, but still remained soft amid speculations that the Federal Reserve may reduce its asset purchase program.