The Aussie was flat after the Reserve Bank of Australia raised its growth and inflation forecasts last Friday on a weaker currency and reiterated a shift to a neutral policy stance. The RBA indicated that a period of stability in the policy rate – at 2.5% since August last year.
The CAD rose as the government said more jobs were created in January. Ottawa said 29,400 new jobs were added to the economy, beating estimates. The news dampened speculation that the Bank of Canada is set to cut rates to spur a sputtering economy.
The US dollar rose amid speculation the Fed would not divert from its tapering course. This follows the monthly non-farm payrolls data released last week when more jobs were added to the manufacturing and mining industries despite a fall in headline numbers.
