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 Japanese yen climbed today, posting the biggest gain against the euro in five weeks, as Chinese manufacturing and speculations about the future monetary policy of the US Federal Reserve made investors nervous and unwilling to risk.

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.

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 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.

This week was relatively quiet in terms of news, though some important macroeconomic reports were released. Meanwhile, the US dollar was rising against other most-traded currencies and the Dollar Index surged to the highest level in almost three years.

The South African rand weakened today, extending its longest decline in a year and touching the lowest level in four years, on concerns that worker strikes and falling commodity prices will hurt the nation’s economy.