The Australian dollar was affected yesterday by a series of negative
domestic reports that halted a rally which set the currency to a one
year high versus the greenback, but today, after favorable reports
coming from Asia, the Aussie managed to reestablish its previous winning
trend.
The Australian currency climbed today versus several lower-yielding
trading options, as stocks surged in Asia benefiting from two reports in
China which indicated a more-than-expected rise in the industrial
output and increased new lending figures, suggesting that one of the
main trading partners of the South Pacific region is recovering from the
current crisis. The New Zealand dollar, normally associated to the
Aussie’s movements since several factors affect both countries’
currencies, also climbed further, reaching the ninth week in a row of
gains versus the greenback, raising concerns in the Reserve Bank of New
Zealand that a strong currency may affect the country’s recovery.
According to analysts, the recovery in China is more than essential for
Australia’s economy growth, since the Asian country is the main
destination for Australian exports. After yesterday’s negative reports
that led to speculations regarding a delay in interest rate hikes, the
Aussie is once again bullish, indicating that optimism in the region
remains strong.
AUD/USD traded at 0.8643 as of 10:56 GMT after bottoming at 0.8555 yesterday. EUR/AUD traded at 1.6896 from 1.6999.
If you want to comment on the Australian dollar’s recent action or have
any questions regarding this currency, please, feel free to reply below.
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