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Australian Dollar recovers

07 October 2016 by News Desk

Australian Dollar then spent Friday recovering from these levels. The pair still trends at lows not seen in three years.

Australian DollarAustralian Dollar was impacted by Friday’s Asian session that saw the publication of the AiG’s Australian construction index for September, according to currency specialists TorFX

The figure recovered from a 46.6 contraction and scored 51.4, which may have bolstered Australian Dollar demand slightly.

Sentiment towards the Australian Dollar remains solid overall due to low bets of Reserve Bank of Australia (RBA) stimulus and solid prices of Australia’s commodity, iron ore.

New Zealand Dollar (NZD) – The Pound to New Zealand Dollar exchange rate plummeted to a new record low during Friday’s Asian session despite making a solid recovery on Wednesday and earlier on Thursday, as a large mistaken trade saw Sterling plummeting even against its weaker rivals.

GBP NZD quickly bounced back from its lows, but remained at historically poor levels. Demand for the ‘Kiwi’ was still weak compared to many other risk-correlated currencies, as the last week’s dairy commodity news disappointed NZD investors.

Australian Dollar recovers

Pound Sterling (GBP) – Sterling slipped in Thursday’s session as Brexit jitters took hold of the market once again, causing the Pound to reverse its Wednesday advances and trend near its worst weekly levels as Thursday’s European session drew to an end. Continued indications that Britain will be losing access to the European Union’s single market following a Brexit weighed most heavily on Sterling trade.

Markets were shaken on Thursday night however, as a mystery trade made during the Asian session led to Sterling plummeting as much as 6% vs the US Dollar at once point. An automated, or ‘fat finger’ trade is speculated as being responsible for the plummet.

This erroneous trade led to Sterling recovering sharply on Friday morning in corrective trade, but the currency remained below Thursday’s levels against most major rivals.

US Dollar (USD) – The Pound to US Dollar exchange rate plummeted to fresh 31-year lows on Thursday, as a weak GBP USD trended near its lowest levels before a speculated ‘fat finger trade’ sent the pair plummeting over two cents in a matter of moments. The pair lacked the drive to recover to Thursday’s levels, but quickly climbed away from its 2016 worst.

Following an impressive set of US reports on Wednesday, Thursday’s data was also relatively impressive to traders. The week’s jobless claims report came in with a better-than-expected 249k, while the number of continuing claims improved from 2,064k to 2,058k.
As a result, the US Dollar continued to strengthen on Thursday and trended strongly on Friday morning as markets awaited the day’s highly anticipated September Non-Farm Payroll figures.

Euro (EUR) – The Pound to Euro exchange rate extended its five year lows during Thursday’s session as Brexit jitters weakened the Pound, and an erroneous trade made in the Asian session sent the currency plunging.

Thursday’s Eurozone data was mixed enough to hold the Euro back and made it easier for GBP EUR to recover on Friday morning. While German factory and construction data came in above expectations, Retail PMI scores from throughout the Eurozone bloc disappointed, with Eurozone Retail contracting at 49.6 overall.

Friday morning saw the publication of August German industrial production figures which came in well above expectations. The monthly figure improved from -1.5% to 2.5%, while the yearly figure improved from -1.3% to 1.9%.

Canadian Dollar (CAD) – The Pound to Canadian Dollar exchange rate fell to new three-year-lows on Thursday night and made sharp recovery attempts on Friday morning.

The pair continued to trend below Thursday’s best levels despite this, as the Canadian Dollar held onto its value thanks to another solid session for oil prices. With prices of oil, Canada’s most lucrative commodity, holding above US$50 per barrel due to optimism in an upcoming oil output cap, the oil-correlated Canadian Dollar has been strong across the board this week.

Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.

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