The Australian dollar has broken all expectations, gaining to the record its highest level against its U.S. counterpart since it began trading in 1983, while traders performed carry trades techniques, by which the yen is sold in favor of currencies that hold higher interest rates or other higher-yielding assets.
The Aussie has continued its gains against its US counterpart, recording a new record high at 1.0436.
As for the unemployment rate drop noted on the Australian currency, the AUD has witnessed a significant increase against the US dollar and other major currencies, with an increasing number of new jobs expected; indications to both growth and inflation in the Australian economy and thus increasing demand for the Australian currency.
Moreover, the Australian currency advanced versus majors while it continued its upside trend versus the greenback; recording its historic high of 89.40 against the Japanese yen on Thursday.
The Australian economy released a report showing that unemployment rates dropped lower than expected during the month of March, which indicates that companies are hiring more workers following the Reserve Bank’s forecasts for the economic growth this year and thus pushing the Australian currency to record a new historic high.
On Friday, the Australian economy will not release any fundamental data. Meanwhile, the US economy will end the week by issuing its wholesale inventories index for the month of February forecasted to show an incline by 1.2%, more than a previous reading 1.1% in January.
Originally posted here
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