Last Week Market Overview
Last week, the US dollar index fell by 0.67%, and non-US currencies generally appreciated. Among them, the Australian dollar performed the best with a rise of 1.63%, followed by the Japanese yen up 0.74%, the British pound up 0.88%, and the euro up 0.52%.
Logic Behind the Significant Rise of the Australian Dollar
The Australian dollar led the weekly gains, mainly benefiting from a weakening US dollar and a rebound in risk sentiment. During the special environment of reduced market liquidity over the Christmas holiday, investors' risk appetite increased, boosting demand for high-yield currencies.
However, it should be noted that market trading is light during the holiday, and the sustainability of large fluctuations remains to be observed.
Euro's Rise Meets Resistance, Federal Reserve Expectations Are Key
The euro/USD once surged to 1.1808, hitting a three-month high, but ultimately closed with a 0.52% gain. US Q3 GDP grew by 4.3%, exceeding expectations, but lagging effects limited its support for the currency market.