It was a seesaw week for the Japanese yen, which started the week on a soft footing after Sunday’s Chinese manufacturing figures, which came in above forecast and improved upon the previous month, heightened demand for riskier assets and cut traders’ appetite for the safe-haven Japanese currency. The yen then recovered slightly on Tuesday, following poor performance by Japanese stocks, which shook confidence in the Japanese market. The recovery was again pegged back, however, by good data out of the US, which further curbed demand for safer assets.
Another mover was the Australian dollar, which was supported by some good data releases out of China. Any strong Chinese data, specifically manufacturing, is good news for the export-reliant Australian economy, with China being its primary export destination. Strong growth figures in the mid-week further bolstered the antipodean currency. The Canadian dollar lost out yesterday off the back of below-forecast building permits and economic health figures. Employment figures released this afternoon will provide an opportunity for recovery.
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