Fall of the Dollar and Its Consequence
The Australian dollar has witnessed a recent fall in trade with no significant data release scheduled in Asia, says Barry Sendach. The AUD & USD traded down 0.15% at 0.8755.
The U.S. dollar traded considerably lower against foremost global currencies after investors summarized weekly jobless claims data, and resolved the numbers portraying a labor market that is still in need of financial support to some degree.
Weekly initial jobless claims rose in line with expectations, reports the U.S. Labor Department. The number of ongoing jobless claims stayed put above the 3 million mark for a second consecutive week, they said.
Barry Sendach is also of the opinion that fed bond purchases soften the dollar for as long as they continue to linger by holding back long-term interest rates to incite recovery, sending investors to advantage classes such as stocks and commodities in the process.
The U.S. manufacturing PMI turned down to 53.7 this month compared to a final reading of 55.0 in December last year, although analysts were looking forward to a steady index.
The National Association of Realtors submitted a report that the U.S. existing home sales at 4.87 million units from 4.82 million in November, ’13; in contrary to the expected increase of 4.94 million.