FOREX-Dollar barely flinches after Trump impeachment, Aussie jumps on solid jobs data

By Swati Pandey
SYDNEY, Dec 19 (Reuters) - The dollar took in stride the
impeachment of U.S. President Donald Trump on Thursday while its
Australian counterpart rallied after a surprise fall in the
country's unemployment rate.
The British pound GBP=D3 remained under pressure on
renewed fears of a chaotic exit from the European Union. It was
last at $1.3083 after sliding nearly 2% in as many days.
Dollar traders were remarkably sanguine after a majority of
lawmakers in the U.S. House of Representatives voted to impeach
Trump. An index that tracks the dollar against six major currencies
hovered at 97.40, not far from a six-day high of 97.475 touched
on Wednesday. .DXY
"It is unlikely that the Senate will support the motion when
it votes in January, as is required to remove Trump from
office," ANZ economists wrote in a note.
The Aussie AUD=D3 climbed as high as $0.6883 after the
robust jobs data suggested the country's labour market might
still have enough life in it to lessen the need for more
interest rate cuts. In New Zealand, better-than-expected third quarter economic
growth data sent the kiwi NZD=D3 bouncing off a one-week low
at $0.6588.
Risk sensitive currencies such as the Aussie and the kiwi
started December on a firm footing after a preliminary
U.S.-China trade deal and the election victory of U.K. Prime
Minister appeared to remove two of the main risks in financial
markets.
However, fears have resurfaced this week as the spectre of a
U.S.-led tariff war has not completely disappeared with traders
awaiting more details on the "phase one" deal with Beijing.
The safe haven yen JPY= held in a tight range at 109.59
per dollar. It is mostly flat so far this month.
U.S. Trade Representative Robert Lighthizer said on Tuesday
that the United States may raise tariffs on European goods as it
tries to shrink its chronic trade deficit with the continent,
re-igniting worries of the prospects of the export-driven euro.
The euro EUR was last hovering around Wednesday's trough
of $1.1109 against the dollar, shrugging off a
better-than-expected survey of German business morale. It was
last at $1.1119. "The most significant piece of news overnight has been the
German December IFO survey, which... has shown evidence that the
German economy may be in the process of pulling itself up by its
boot straps," said Ray Attrill, Sydney-based head of forex
strategy at National Australia Bank.
"Improvement in the German – and broader Eurozone – economy
– is fundamental to our expectation for a softer U.S. dollar and
stronger Euro next year."
Markets will focus on interest rate decisions from the Bank
of England and the Bank of Japan later in the day, with both
seen unlikely to change policy.