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Dollar Higher on Better than Expected Growth

By Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

The US Dollar edged higher against the Japanese Yen, after an unexpectedly upbeat GDP helped to lift the greenback. The US Bureau of Economic Statistics reported on Thursday that preliminary 4th quarter GDP results came in at 2.6% annualized, higher than the 2.3% predicted but still well below the 3.4% reading in the previous period. On a quarterly basis, preliminary GDP was reported at 2.0%, against a predicted 1.7%. Core personal consumption was also higher than forecasts, at 1.7% versus a predicted 1.6%. Overall, the news was enough to whet enthusiasm for the Dollar which was broadly higher as a result.

As reported at 10:37 am (JST) in Tokyo, the USD/JPY was trading at 111.7110 Yen, up 0.2963% and moving off the earlier peak of 111.745 Yen. The EUR/USD was trading lower at $1.1366, down 0.022%, while the GBP/USD was $1.3258, down 0.2354%.

China PMI Fails to Help AUD/USD

The Aussie Dollar was unable to maintain positive momentum against the US Dollar after the latest mixed readings on China's manufacturing sector. On Thursday, the NBS Manufacturing PMI for February was released with data reported at 49.2, missing the expected reading of 49.5. Today's release of the Caixin Manufacturing PMI, which showed a reading of 49.9% in February, above the 48.5 that had been predicted failed to improve sentiment. For reference, 50.0 is the threshold which separates contraction from expansion within the sector. The AUD/USD was trading at $0.7086, down 0.1901%, moving off the earlier peak of $0.71095.

Barbara Zigah
About Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

 

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