Nevertheless, it declined versus the Japanese yen, which led to recovery from the earlier losses to trade as one of the Forex market’s strongest currencies. The Australian dollar dropped against the New Zealand dollar also as it was too among the strongest, climbing to the highest level in a year and a half.
Market analysts considered that one of the factors supporting the Aussie and many other currencies was the US dollar’s weakness. Following the Federal Reserve, the dollar was weakening made its dovish monetary policy statement, even though it was rising initially after the announcement. An extra positive factor for the Australian currency was improving the global economy from the coronavirus pandemic. The economic rebound was incredibly strong in China — Australia’s largest trading partner and Australian export customer.
Domestic macroeconomic indicators were also positive for the Australian dollar While there were no economic statements in Australia today, yesterday’s employment data was surprisingly positive. The Australian Bureau of Statistics published that Australian employers added as much as 111,000 jobs in August. That was a total confusion to experts who were expecting a drop of 40,000. Both part-time and full-time employment saw gains. The lay-off rate edged down from 7.5% to 6.8%, whereas economists had predicted an uptick to 7.7%. The cooperation rate rose slightly from 64.7% to 64.8%.
The shocking surge of COVID-19 cases in the Victoria state continues a significant hurdle to the Aussie. Still, the number of new topics declined lately, and Australian Prime Minister Scott Morrison says that this is reassuring.
AUD/USD was flat at 0.7310 as of 11:31 GMT today. EUR/AUD was also flat at about 1.6198. At the same time, AUD/JPY dropped from 76.60 to 76.34, and AUD/NZD tumbled from 1.0821 to 1.0774.