The starting of the last week was very quiet as there was no high impact scheduled news. But the dollar was still suffering from extensive bearish pressure due to the ongoing economic crisis. The possibility of the canceling the third rate hike in the U.S economy created a major bearish threat to the U.S dollar index to the global market. But the market started to show some volatility after the release of the European unemployment rate data. The Core Cpi in the European economy increased by 1.2% and it boosted the EUR/USD pair in New York trading session.
On Tuesday the booming Aussie economy faced a major bearish threat after the dovish statement from RBA. The AUD/USD pair sharply fell from the 0.8039 mark. Most of the economist are thinking that the Aussie government will not hike their interest rate until they face an extreme level of stability in their economy. According to Lowe speech, Aussie government is still willing to lend money to its people at the cheaper interest rate for the stable growth of their economy. On the contrary the GBPUSD pair surge from the support level at 1.3023 after the strong data release of the Manufacturing PMI (55.1). The Bulls were further pumped up further more in the New York trading session after the release of weak ISM Manufacturing PMI data for the U.S economy.
The surging NZD/USD pair sharply fell in the global market after the New Zealand employment change fell by -0.2%.But the bearish failed to take the full control of this market since the bulls in the U.S dollar were running out fuel. Followed by this the 51.9 Construction PMI data release in the Britain economy pushed the GBPUSD pair lower from the critical high of 1.32685.However, the bearish threat to the GBPUSD pair was mitigated to a great extent after the U.S ADP Non-Farm Employment data came out as 178K.
Followed by the dovish statement of RBA on Thursday the AUD/USD pair faced the second bearish threat after weak trade balance data release (0.86B).The cable suffered an extensive loss during the London trading session after the MPC official came out with a dovish statement. However, the official bank rate was unchanged at 0.25%.
Friday was a very interesting week as the mighty U.S dollar gained back its former glory after the strong data release in the U.S labor force. The Non-Farm Employment Change came out as 209K which is significantly better than the forecasted data. The change average hourly income of the U.S citizen was 0.3% which is equal to the forecasted data. On the contrary, the Canadian dollar suffered a huge loss in the New York trading session after the employment change data came out as 10.9K.The bulls of the USD/CAD pair surged prior to the closing of the last week.