The Australian dollar dropped against the US dollar and the Japanese yen today despite positive economic data from Australia. The most likely reason for the drop was risk aversion caused by anticipation of an interest rate hike from the Federal Reserve.
The number of ANZ job advertisements rose by 1.3 percent in November, demonstrating the fourth consecutive monthly increase. The report said:
Australiaâs labour market continues to send positive signals about the current state of the economy.
Yet the data did nothing to support the Aussie as the last week’s employment report from the United States reinforced the outlook for tighter monetary policy from the Fed.
AUD/USD dropped from 0.7339 to 0.7303 and AUD/JPY declined from 90.42 to 90.12 as of 11:14 GMT today.
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