2016-11-17 10:49:01

The Australian dollar hardly reacted to the Australian labour data received today during the Asian session. Many economists described the data as contradictory. The number of new jobs in Australia has increased by 9800 in October compared with September and against the forecast of +20000. On the other hand, previous month data has been revised downward (-29000).

The Australian dollar and the pair AUD/USD are under pressure from the sharp decline in iron ore prices (one of the main export commodities of Australia) and large-scale strengthening in the American dollar after the victory of Donald Trump in the US presidential election.

At the Chinese raw exchange market futures for iron ore fell by 6.5% to 577 yuan (83.95 USD) per ton on Wednesday after the decline of 6% on Tuesday.

Recent rise in the USD also contributes to the sharp decline in the pair AUD/USD.

Expectations that US president Donald Trump will stimulate country’s economy introducing tax remissions and expanding expenditures on infrastructure, boost investors’ demand for the USD.

Sales of the US government bonds, which increase the yield of these bonds, also helps to increase the demand for the USD.

The index ICE, which shows the positions USD against a basket of six major currencies, has recently grown to 100.57 - the highest level since April 2013.

The America dollar has grown to the highest level in 13 years.

The pair AUD/USD may continue to decline at the American trading session, when the US data on consumer inflation and applications for unemployment benefits will be published.

At 16:30 (GMT+3) - U.S. Department of Labor will issue the data on initial applications for unemployment benefits. Previous number of applications was 254 000; the forecast is 257 000.

US consumer price index for October and the index of business activity in the manufacturing sector from Philadelphia Fed in November will be also released at this time.

At 18:00 - a speech of the Fed Governor Janet Yellen. If Janet Yellen’s speech indicates probability of the interest rate hike until the end of the year, the USD will sharply grow in the currency market and in the pair AUD/USD.AUD/USD: USD is going up.  Fundamental analysis for 17/11/2016