The Australian dollar displayed resilience against most major currency counterparts in a relatively tranquil trading environment on Monday, driven by the release of crucial economic data.
Earlier today, Australian economic data revealed that inflation increased by 0.2% in August, marking a slowdown from the 0.8% surge witnessed in the previous month of July.
Additionally, the ANZ index tracking corporate advertisements within Australia demonstrated notable growth, surging by 1.9% over the past month.
As of 17:29 GMT, the AUD/USD currency pair showed signs of upward movement, with a 0.1% gain, reaching a level of 0.6459.
Yen Gains Ground
In the foreign exchange market, the USD/JPY pair registered a 0.2% increase, reaching 146.4 as of 17:29 GMT.
In a surprising turn of events, Japan’s monetary baseline showed a substantial 1.7% increase in August, defying analysts’ expectations of a 0.2% decline.
US Dollar Faces Pressure
The US Dollar index faced a minor setback, declining by 0.1% as of 17:24 GMT, resting at 104.1. Throughout the trading session, it reached a high of 104.2 and a low of 104.03.
Market Closures for Labor Day
It’s worth noting that both the US stock and bond markets were closed today in observance of the Labor Day holiday. Operations are set to resume tomorrow, with investors keenly monitoring the market’s response to recent economic developments.
In conclusion, the Australian dollar’s resilience in the face of economic data, coupled with movements in other major currencies, set the stage for a potentially eventful trading week as markets resume normal operations.
