Earlier today the Australian dollar against the US dollar increased from near lows around 1.0154 towards upside boundary at 1.0252, and we will interestingly watch further upside attempts are predicted because the trend is negative.
Aussie strength was generated by less than expected Unemployment rate in April, reported at 5.5% while market participants estimated 5.6%, also was lower than March rate at 5.6%.
In addition the employment increased widely in April by 50.1K, beating estimates of just 11.5K increase.
US equities have been driving recent rally in equities as S&P rose to new high at 1632.69 advancing by 0.41% in Wednesday session, Dow Jones Industrial Average rose by 0.32% remaining above unprecedented level at 15000.
Nonetheless, Chinese CPI increase more than expected, from 2.1% in March to 2.4% in April increasing slightly concerns about China’s stimulus program possible constrains.
The sterling against the greenback recovered yesterday back to resistance at 1.5589 before it drops to 1.5532 today ahead of BOE decision for its monetary policy, expected to maintain asset purchases at £375B and key rate at 0.50%.
The EURUSD was backed on Wednesday by stronger German industrial production, advancing as high as 1.3193.