The Australian dollar witnessed high while the fall has been noticed in the US dollar. The AUD retreats after falling above one US cent.
The trading of AUD began at 104.92 US cents which was 104.40 US cents on the local close of Tuesday. The currency had a post-float high which was 105.84 cents on April 9.
Earthquake in Japan on this Tuesday once again forced the investors to move to save-haven assets. As a consequence, the level of nuclear emergency was raised by Japan and this level of nuclear emergency was equal to the Chernobyl disaster in the year 1986.
Michael Turner who is a fixed income and currency strategist of RBC (Royal Bank of Canada) said that Wednesday proved as very choppy day for the AUD.
The AUD started with weaker, though it did bit better but in overall it was quite tight range. According to Mr. Turner, the Euro which is also a very high risk currency similar to the Australian dollar had also retreated over 1.45 US cents after its fall on Tuesday.
According to him, it has really been beneficial to find US dollar in a weak state but if one take the cross rate of Euro/Aussie into consideration then it will be realized that the Euro is just slightly higher. Undoubtedly, it should not to be taken as Aussie strength; instead it was just that US dollar was bit weaker.
Coming Friday, official March inflation data along with the survey conducted by Michigan April consumer sentiment will be released by the US. The survey will comprise inflationary expectations.
The data is being awaited curiously as it is expected to be interesting by market experts. It is due to the fact that there is a public debate among the US Federal Reserve Official over the issue regarding the ceasing of the central banks economic motivating programs and when interest rates are expected to be raised. The report and survey are expected to throw light over the debate and declare certain important announcements as well. The market experts are expecting that the decision will bring weight to one side of the argument.