The Australian dollar jumped today after investors’ appetite for risk bolstered riskier currencies. Yet the Aussie trimmed gains against the Japanese yen and retreated versus the US dollar as of now.
News that Lawrence Summers is no longer a candidate for the office of Federal Reserve Chairman together with less-than-shiny economic data from the United States reduced probability of smaller stimulus. This resulted in optimism and willingness to risk among Forex traders. Yet they were worried that tomorrow’s minutes of the last Reserve Bank of Australia policy meeting may reveal plans of the central bank to ease monetary policy, hurting the performance of the Australian currency.
AUD/USD fell from 0.9327 to 0.9312 as of 20:01 GMT today after rising to 0.9390 (the highest since June 19) earlier. AUD/JPY retreated from the daily high of 92.79 to 92.30 after opening at 92.06.
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