The Aussie dollar fought back from the lowest levels in more than six years to regain the 77 cent level last night. It traded up to a high of 0.7727 but is back at 0.7685 this morning.
That’s a big turnaround from how things were looking at 4pm yesterday afternoon as Asian traders were buying US dollars and selling the euro down below 1.05.
But that all changed last night with European traders buying the Aussie dollar and euro back off their lows. That was even before the much weaker than expected US retail sales for January which printed -0.6% against the market’s guess of a rise of 0.3%.
That’s a big miss and for many it suggested that the Fed might just be more patient than last Friday’s big 295,000 non-farm payrolls release suggested. It’s why the Dow is up 244 points and why the US dollar rally may have had a short-term peak.
We’ll know about the Fed next week.
In the meantime, the Aussie is trading at the whim of global players.
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