The dollar eked out small gains against the euro in early trade on Friday, but remained on the defensive near a three-month low against a basket of currencies on concerns U.S. growth may be disappointingly weak.
The Australian Dollar has opened around USD0.9000 this morning after trending higher in the early part of the European session.
The Aussie dollar staged a remarkable recovery over the last 24 hours rallying from a post inflation report low of 0.8904 to trade at a high of 0.9040 overnight.
U.S. lawmakers will hold a hearing on Sept. 15 to consider whether U.S. government action is needed to address China's exchange rate policy, a key House of Representatives committee said on Thursday.
China loosened its yuan, also known as the renminbi, on June 19 from a 23-month-old peg to the dollar but it has barely risen in value since then.
The euro hit a 12-week high against a broadly weaker dollar on Thursday as month-end demand helped pushed the single currency above a key technical barrier.
A jump in euro zone economic sentiment to a 28-month high and a decline in German unemployment supported the euro's gains.
The euro hit an 11-week high against a broadly weak dollar on Thursday as month-end demand for the single currency helped push it above a key barrier.
The euro remained supported by firm euro zone data, with figures on Thursday showing euro zone economic sentiment jumping to a 28-month high, while German unemployment declined for the 13th consecutive month.
The Australian dollar has opened lower this morning following a bout of risk aversion trading overnight.
The Aussie's three-week ascent towards US90.50 came to an abrupt halt yesterday immediately after the release of the much-anticipated June quarter inflation data.
The dollar fell versus the Japanese yen on Wednesday as a weaker-than-expected reading on new orders for U.S. durable goods added to fears about the U.S. economic outlook.
Demand for the dollar also fell against the euro as investors awaited for more supportive news for the euro, which rose above $1.30 but has been stuck in a range recently.
International Monetary Fund staff believe the yuan is substantially undervalued based on expectations that China's current account surplus will increase as the global economic recovery gains strength, a senior IMF official said on Wednesday.
The euro struck a two-month high against the yen and stayed within reach of an 11-week high against the dollar on Wednesday, underpinned by robust European bank earnings and solid economic data.
But analysts said the durability of any recovery in Europe was questionable.
The euro struck a two-month high against the yen and stayed within reach of an 11-week high against the dollar on Wednesday, as markets stayed in risk-on mode on robust European bank earnings and solid economic data.
The euro hovered below a key level against the dollar on Wednesday, dented by profit-taking after it hit an 11-week high, while the Australian dollar fell as inflation data pared the chances of an interest rate rise next week.
Bank of Japan policy board member Hidetoshi Kamezaki said Japan's economic recovery lacks strength as export growth will likely moderate and government stimulus steps are set to expire.
The euro slipped below a key level against the dollar on Wednesday, dented by profit-taking after it hit an 11-week high, while the Australian dollar fell as inflation data pared the chances of an interest rate rise next week.
The Australian Dollar has opened little changed and is still starts with a 9 as global markets seem to be becoming cautiously optimistic about the economy in the latter half of calendar 2010.
An increase in the Australian Conference Board leading index from 0.1% to 0.3% during the month of May added some underlying support to the Aussie dollar in Asia yesterday as it held firm above the 90 cent handle etching out gains to enter offshore exchange at 0.9025.
The euro hit an 11-week high against the dollar and a seven-week high against the yen on Tuesday as solid bank earnings lifted equities and encouraged investors to take on more risk.
Strong earnings from Swiss bank UBS (UBSN.VX) helped lift European shares .FTEU3, with banking stocks .SX7P leading the gains and supporting the market's relief over the results of last week's European bank stress tests.
A increase in labour disputes between management and workers in China, mostly at foreign-owned factories in the southeast, has raised questions about the country's future as a low-cost manufacturing centre.
The euro hovered close to a two-month peak against the dollar on Tuesday, retaining support after last week's European bank stress tests revealed no horrors while increased demand for riskier assets weighed on the dollar.
The euro ticked up toward a two-month peak above $1.3000 on Tuesday, although traders were cautious about bidding it up too much as they await clarity on Deutsche Bank's exposure to euro zone sovereign debt.
Deutsche Bank has not revealed its exposure to euro zone sovereign debt following tests to see how well banks in the region would stand up to financial shocks.
The Aussie dollar held on to support around 0.8940 during the Asian session despite a lower than expected second quarter Producer Price Index or PPI as its referred to.
Overnight we saw the AUD break through USD0.9000 and this morning it is currently trading comfortably above this level.
Daily foreign exchange trading turnover in London, Tokyo and New York soared in the latest year, bouncing back sharply from a crisis-induced decline, data released on Monday showed.
Average daily volume in Britain jumped to $1.747 trillion in the year to April 2010, up 31 percent, the Bank of England said. It rose 15 percent compared with volume in October 2009.
Average daily volume in the over-the-counter U.S. foreign exchange market rose to $754 billion in April, up 11.8 percent from six months earlier, the Federal Reserve Bank of New York said on Monday.
The total was just shy of record turnover of $762 billion seen in the six months to October 2008. The Fed said volume across all instrument types and execution methods and among most currency pairs rose in the latest reporting period.
The euro edged up against the dollar on Monday but was below early highs as investors speculated European bank stress tests weren't strict enough to support a rally in the euro zone single currency.
Demand for the yen rose as appetite for risk faded, with European shares sliding and U.S. stock futures lower. Still, analysts said euro gains may not wane completely as recent data in the region had been supportive for the currency.
The euro zone interbank funding market reacted calmly on Monday to Europe's bank stress test results, and the absence of nasty surprises will see the European Central Bank continue to withdraw liquidity.
The euro edged up against the dollar on Monday but came off early highs as investors concluded that although European bank stress tests revealed no horrors they delivered no compelling reason to buy the single currency.
The euro erased early gains against the dollar on Monday as caution set in after initial investor calm in the wake of the release of European banks' stress test results late on Friday.
Early risk-taking sentiment faded, with European shares down 0.4 percent .FTEU3 by mid-morning.
Just seven of 91 banks failed the tests, including six in Spain and Greece, for an overall capital shortfall of 3.5 billion euros.
The euro firmed against the dollar on Monday as investors bought into riskier assets, calmed after the release of European banks' stress test results late on Friday.
Just seven of 91 banks failed the tests, including in Spain and Greece, for an overall capital shortfall of 3.5 billion euros.
