The Australian dollar rallied off a two-month low on Thursday after employment growth topped market expectations, but retained a downward bias as global monetary conditions tighten while local rates remain on hold. The currency's gains were also capped around 73.5 US cents by an ongoing sell-off in commodities.
In the lead-up to a Bank of Japan policy announcement, gold - highly correlated to the Aussie dollar - fell sharply as funds liquidated yen-funded carry trades invested in gold. One Aussie bought $0.7356/61 compared with $0.7340/45 on Wednesday. It had traded a $0.7316-$0.7362 range overnight, recording a fresh two-month low.
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