The Asian trading session on Friday saw the Aussie bounce back from its three-year low against the U.S. dollar. AUD/USD pair witnessed a surge of 0.50% to trade at 0.9245, prompting many investors to get their hands on some good deals with the Australian dollar. As per analysts, AUD/USD was most likely to gain strength at 0.9228 and find it struggling at 0.9313.
The hike in the Australian currency was not expected, especially when HSBC predicted that the Aussie would go down by 88 cents against the Greenback before June next year. As per the reports released by HSBC on Thursday, the greenback is entering a “powerful rally,” which is likely to stay for some more time. Other banks including Goldman Sachs also expected the downing trend on the Aussie.
Coming to other Aussie rivals, AUD/JPY was trading at 89.80 on Friday session, while the AUD/NZD pair dropped by 0.08% to trade at 1.1849.
Talking about the U.S. dollar, the greenback fell against the Japanese yen during the Asian session on Friday, as the U.S. stocks market posted its worst performance since 2011 on Thursday ahead of rumors that the Federal Reserve will scale back the monetary easing program shortly this year. USD/JPY slipped by 0.08% to trade at 97.20; while the analysts had predicted that the pair would prop up at 96.19 and face conflicts at 99.05, the session low and highest of June 11 apiece. The drop mcame even as the traders are awaiting the speech of Governor of Bank of Japan, Haruhiko Kuroda.
The Japanese yen plummeted by 2.8% this week against its U.S. counterpart during the early Friday session in Asia. It is perhaps its worst performance in a week against the greenback after April’s first week ahead of the monetary stimulus efforts made by the Bank of Japan.
Elsewhere, the GBP/USD pair inched down by 0.07% to trade at 1.5498. USD/CHF and USD/CAD posted a drop of 0.05% and 0.02% to trade at 0.9271 and 1.0384, respectively.
EUR/USD pair went down by 0.02% to trade at 1.3219, following the release of manufacturing purchasing manager’ index from Germany, which dropped to 48.7 in June against the expected 49.8 mark. The services PMI in Germany went up to 51.3 from the 49.7 figure registered in May.