Only a year ago, AUD/NZD was steeped in a sharp rally. However, since then, the pair has turned to choppy, directionless price action.

Despite softer labor market numbers this morning, the rally in the US dollar suggests that the market is fully focused on tomorrows service sector ISM report.

It was another record setting day in the financial markets with both the EUR/USD and Dow Jones Industrial Average hitting new all-time highs.

Led by the US dollar, it has been a record setting week in the financial markets. Today, on a closing basis, the dollar sunk to an all-time low against the euro.

The minutes from the last Federal Reserve meeting was hawkish, yet the dollar is struggling to rally. This tells us that those who want to be long dollars for carry and yield are already long while the rest of the market is more interested in countries that will be raising rates instead of leaving them steady.

Liquidation of long dollar positions ahead of the holiday weekend has pushed the greenback to fresh 2-year lows against the euro.

After Wednesday's data left dollar bulls a little dejected, the market was ready for a pick-me-up.

Wednesday was the crux of the week for fundamental currency traders.

The previous sentiment to higher inflationary pressures and further rate hikes seems to have dissipated as policy makers are potentially looking towards a more dovish outlook.

The dollar was lower on the day despite economic fundamentals that would’ve supported the US currency otherwise.