The commodity currencies - which include the Canadian dollar, New Zealand dollar, and Australian dollar – all fell back yet again on Wednesday, and as I mentioned in the US dollar section, increased demand for Treasuries, the 2.94 percent drop in the Dow Jones Industrial Average, and the nearly 6 point rise in the CBOE’s VIX volatility index suggest that risk aversion is in play. The Australian dollar faces even more bearish potential overnight as the Australian unemployment rate is anticipated to pick up to 4.5 percent from 4.4 percent while the net employment change is forecasted to fall negative for the second straight month by 20,000. The latter report tends to have a greater impact on the Aussie since the figure rarely meets expectations and can lead to volatile short-term price action for the Australian dollar immediately following the news at 19:30 EDT.
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