Let us check the market. This month, the Australian dollar is up by 3.7%, and the kiwi is up by 4.5%, after dipping on Tuesday. A recent ANZ survey of traffic movement in New Zealand has been an indicator of economic growth. The survey saw a sharp rebound last month in heavy vehicle traffic.
In Australia, the virus appears to be in retreat. Moreover, their re-opening is gathering pace. This prompted RBC Capital Markets to make some modest improvements in its 2020 GDP forecast on Monday, lifting it from -4.5% to a higher -4%.
Furthermore, the yen rose to a one-week high of 107.79. It was the last trading up by 0.5% at 107.90.
Yukio Ishizuki is a foreign exchange strategist at Daiwa Securities in Tokyo. He said that, since Monday, Japanese names have been regularly active in the dollar/yen pair.
Analysts are trying to downplay the chance of yield-curve will be adopted by the Federal Reserve.
The Dollar of Australia and Other Currencies
Ishizuki does not think that yield curve control is necessary now. Nevertheless, the dollar is under the evident pressure of selling.
The common currency decreased by 0.3% to $1.1258.
A statement from the Federal Reserve is due at 1800 GMT on Wednesday.
It did not forecast a change in interest rate settings. Nevertheless, in recent days futures prices have shown that investors abandoned expectations of rates dipping below zero next year.
Against the United States dollar, the Norwegian crown fell by1.7% to 9.4230. Moreover, against the euro, the Norwegian crown fell to 10.5980. It this jumped off the three-month highs it touched yesterday.
The dollar in Canada fell by 0.7% to $1.3484.
Thus, against the commodity currencies, the United States dollar rose. Traders are waiting for the next meeting of the Federal Reserve. The yen of Japan rose to a 1-week high.
Moreover, there is tension in the trading partnership between China and Australia. Nevertheless, the Australian dollar managed to push up to 70 cents.
This is the current news of the market.
