Let’s see what changed in the Market. United States manufacturing data jumped unexpectedly. Australian dollar rises after Reserve Bank of Australia keeps rates on hold. Brexit talks, Iowa caucus, and coronavirus are all in focus.
The essential United States survey showed a surprise recovery. Thus, on Thursday, the dollar held firm. The central bank of Australia left rates steady and retained the outlook despite the bushfires at home and a coronavirus in China. Thus, the Australian dollar rose.
The virus from China had an outbreak. Traders have also focused on the United States state of Iowa. There Democrats began the months-long process for choosing a challenger to United States President Donald Trump.
The dollar indicator rose 0.44% on Monday. It was the most significant gains so far this month. For now, the dollar holds firm at 97.832.
The ISM (Institute for Supply Management) reported that the United States factory activity unexpectedly rebounded. Thus, the boost came after contracting for five straight months amid a surge of new orders.
The dollar traded against the yen at 108.70 yen. On Monday it had a gain of 0.3%. It was the biggest gain in a downtrend that started in mid-January.
On Monday, the euro slipped 0.3%. Today it stood at $1.1057.
The RBA (Reserve Bank of Australia) kept its first cash rate at a record low of 0.75%. The Australian dollar pulled away from a 10-1/2-year low of $0.6670 touched last October. Thus, it rose 0.35% to $0.6714.
In Australia, there have been devastating bushfires. Also, the threat to growth posed by China’s rapidly spreading coronavirus. Nevertheless, it retained forecasts for economic growth for this year and next at 2.75% and 3%, respectively.
Nevertheless, futures of interest rates are fully pricing in one rate cut by May. The virus from China is adding to the headwinds to the Chinese economy – Australia’s primary export market.
It is leading news of the market.