Australian Dollar Rebounds Before U.S. Jobs Data

After declining considerably yesterday versus the greenback, the Aussie dollar recovered today and is heading towards another weekly gain versus its U.S. counterpart as a report is likely to post favorable employment figures in the world’s largest energy consumer, raising demand for commodity linked currencies.

The Australian dollar pared some of yesterday losses versus the U.S. currency and is still positive in the weekly comparison versus the greenback as it benefited from a strong pattern of risk appetite in the beginning of the week when concerns regarding the state-owned investment agency Dubai World cooled down, as the U.A.E. central bank affirmed that it will back its debts. A bearish day in commodities markets yesterday influenced negatively the rates for the Aussie dollar, but today, as a U.S. jobs report is likely to indicate an improvement in job conditions as forecasts suggest a job decline at the slowest pace in more than a year, signaling an eventual trend reversal in employment trends that may bring risk appetite higher among traders.

The Australian is still very attractive and today’s employment data in the U.S. will be essential to determine the trends between these two currencies, according to most specialists. Despite the Aussie dollar’s appeal considering its sequential interest rate hikes, its U.S. counterpart may become as well more attractive, ending a long rally for the Aussie versus the greenback.

AUD/USD traded at 0.9249 as of 10:11 GMT from 0.9131 on Monday. AUD/JPY traded at 81.58 from 79.03 in the beginning of the week.

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