FX Market Update: Dollar Slips, Aussie Jumps after Jobs Data
The U.S. dollar traded slightly lower on Thursday as market concerns around Greenland-related geopolitical tensions eased, reducing safe-haven demand for the greenback. President Donald Trump backed away from threats to impose tariffs on European NATO countries and ruled out force over Greenland, reducing a key source of market stress, causing a selloff in U.S. assets.
Some analysts noted that there is no strong sign investors are moving away from the U.S. dollar, suggesting the reaction was more about short-term fear than a long-term shift.
It was last down 0.49 per cent to $1.1744 per euro, following a 0.35 per cent rebound in the prior session. The dollar weakened 0.69 per cent to 0.7899 Swiss Franc. This shift calmed the global markets, and weakens USD.
Australian Dollar Rally
Reuters says, Australia’s December employment report beat expectations, with job gains and a drop in unemployment, fueling speculation of a near-term RBA rate hike.
The AUD hit its strongest levels in over a year, driven by both the data surprise and broader risk appetite. It climbed about 0.4%, reaching a high near 0.6791. After breaking above the key resistance level at 0.6766, the price gained upward momentum.
This move opens the door for further upside, with the next targets seen around 0.6793, 0.6824, and potentially the 2024 high near 0.6943.
