Australian Dollar Hits 7-month High on Favorable Employment Data

  May 07th, 2009 at 12:36, Andriy Moraru

Australian dollarThe Aussie rose against the yen after a regional jobs report in Australia showed an increase in employment conditions and data.

The yen had a day of losses against the main currencies in Oceania, after continuous evidences that the global financial situation may be improving, pushing investors towards high-yielding assets and decreasing the risk aversion sentiment on equity markets. In Australia, after a report showing gains on regional employment, doubts on whether the national interest rates shall have further cuts were lifted, making the Aussie to hit a 7-month high against the weakening yen. The kiwi followed the Australian dollar, and posted gains against the Japanese currency after better-than-expected unemployment numbers were released.

Risk appetite is growing in Asian markets, which will certainly bring investors to buy Australian assets, according to experts. Since last week, when concerns that the swine flu would deepen the recession ended, the global markets witnessed the sharpest rally since the global slump started last year, with investors leaving refuge currencies such as the yen and the Swiss franc to buy stocks and currencies like the Aussie. Analysts also indicate that a recovery in commodity prices may bring the Australian dollar to higher levels.

AUD/JPY rose sharply from 72.88 to 75.08, NZD/JPY followed, rising from 57.22 to 58.87. EUR/AUD fell from 1.7950 to 1.7604.

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