The US dollar saw a recovery in value on Tuesday yesterday but weakened again when trading resumed in the New York session.
The risky market sentiment that investors are currently focusing on is a factor supporting the recovery of the US dollar as a safe-haven currency.
However, analysts see the US dollar as remaining at risk of further decline following the expectation that the Federal Reserve (Fed) will implement aggressive monetary policy easing at its September meeting.
The United States (US) NFP employment report published last Friday is seen as a trigger for concern over the risk of a global economic recession affecting the entire financial market.
Not only the currency was affected, the stock market also experienced a scary situation with the massive sale of shares of giant companies.
The fall of the market in the US followed the bad situation of the market in Japan with the withdrawal of investors after the central bank of Japan (BOJ) implemented monetary policy tightening measures.
High-yielding currencies such as the Australian dollar and the New Zealand dollar suffered heavy falls at the start of the week following market risk-off sentiment. But recovered again in the middle of this week.
The Reserve Bank of Australia (RBA) at yesterday's meeting kept interest rates unchanged but investors took note of governor Michele Bullock's hawkish follow-up speech.
The focus will once again be on Bullock on Thursday who will speak at an event in New South Wales.
New Zealand employment data has been in focus at the opening of the Asian session this morning which saw positive job growth in June beat forecasts, while the unemployment rate rose to 4.6% but was lower than expectations of 4.7%.
