The US Dollar Rose By &Nbsp For A Few Days, But The Australian Dollar Was On The Rise.

Strong US economic data order

The dollar rose every day.

The US economic data are generally better than expected: in December, the private sector employment grew by 297 thousand, almost two times the market expectation; in December, the ISM service index was 57.1, hitting a new high of four and a half years.

The market's favour of US dollar assets has been strengthened again, and the increase of US Treasury bond yields also triggered the pfer of funds from risky currencies to the US dollar, leading to the rapid rise of the US index and climbing to the 80 pass.

The foreign exchange analyst of Bank of communications expects that the US dollar will maintain a certain rebound trend in recent years, but we need to be cautious about the extent of the rebound. The target ahead can be seen to 83.5.

Not only the market participants, but also the meeting minutes released by the Fed this week also showed that the Fed's policymakers believe that the recent economic situation has shown some positive signs.

However, the Fed warned at the same time that the US economy still faces some downside risks, including the real estate market and the deterioration of the sovereign debt crisis in Europe.

The result of the meeting shows that the improvement of the US economic outlook is not enough to make the US adjust the asset purchase plan. The Fed may not rush to compress the scale of US $600 billion QE2.

Since the new year, the US dollar has strengthened, making the RMB change the trend of appreciation at the end of last year, weakening the US dollar and trading in the vicinity of 6.62.

Zhang Hao, an analyst with China economic analyst at ANZ bank, expects that the RMB will probably test the 6.64 position against the US dollar in the short term, and the long-term appreciation trend of the RMB has not changed.

The Australian dollar has been hit but the bullish trend has not changed.

Queensland, northeast Australia, has suffered the worst flooding in decades. More than 22 towns have fallen into the sea.

It is still too early to assess the impact of the flood on the overall economy.

However, due to the production of about 60% coking coal around the world, the flood has had a severe impact on Australian commodity production. The international price of coking coal has risen to about 250 US dollars per ton in recent weeks.

Australia's new bank predicts that the flood will cause 0.25 percentage points of GDP losses and boost inflation in Australia in the short term, which may also affect Australia's first quarter employment rate.

Under this expectation, the Australian dollar traded against the US dollar for several consecutive trading days, and fell below the two week low of 0.9945.

However, the foreign exchange analyst at Bank of China said that the Australian dollar fell and there were many factors leading to the loss of profits in the early stage. From the basic point of view, Australian exports were still supported by China's demand.

The Australian dollar is facing a downward trend in the short term, but the long-term upward trend has not changed.

Traders suggested that when the Australian dollar fell further to 0.99 against the dollar, investors could see this as a good opportunity for the Australian dollar to build positions.

The euro is still declining.

Since the outbreak of the Greek debt crisis, the euro zone has not been very quiet.

Market participants worry that once the sovereign debt crisis hits Spain, it may lead to a bigger crisis.

At this time of crisis, the Chinese side said that China is a long-term and responsible investor in the Spanish bond market, not reducing Spanish bonds, and will continue to buy as the case continues.

The above statement eased the euro debt crisis to a certain extent.

However, in the context of high financial deficits in European countries, the euro is still difficult to get out of the decline.

Overall, the uneven economic recovery of countries is a relatively obvious problem in the recent euro area, which will undoubtedly make the overall economic decision of the euro area more difficult.

From a graphical perspective, the euro is back to the pre 1.31 platform of the US dollar for consolidation, maintaining a concussion in the short term.

Traders believe that the euro market will be more pessimistic if the euro is not stable against the US dollar at 1.2950.