Over the past 18 months, the Australian Dollar has been under significant pressure, at one point striking a 6-year trough as growth prospects diminished. Recently, growing evidence that China, a major trading partner and export destination, was continuing to experience slowed growth sent the Aussie Dollar markedly lower. In the overnight hours in Asia and Europe, however, the Aussie was among the largest market movers, gaining nearly 1% against the US Dollar after the report of a positive surprise in jobs figures for March and an upward revision to February’s numbers. That dialed back expectations that the Reserve Bank of Australia was on the verge of another interest rate cut.
As reported at 9:45 am (GMT) in London, the AUD/USD was trading at $0.7750, a gain of 0.9% and edging just off the overnight peak set at $0.7782; analysts point out that the recent recovery in oil prices at 1-year highs was also helping to provide a lift to the Aussie Dollar.
Euro Feels Pressure as Greek Uncertainy Resumes
In the Eurozone, Greek uncertainty is once again weighing on the common currency, though the recent fall in yields on German government bonds is also putting pressure on the Euro. The EUR/USD was trading at $1.0634, a loss of 0.5% while the EUR/GBP was trading lower at 0.7181 pence, a decline of 0.3% for the Euro but not far from the session low of 0.7164, a 4-week low.