Forex News

The Australian currency rose against the yen from a seven-week low after a report yesterday indicated that unemployment figures in Australia rose less than forecast, spurring demand for the Aussie, which had lost against all majors since last week’s risk aversion wave.

After losing more than 3 percent yesterday versus the yen and the greenback, the Australian dollar initiated a rebound influenced by domestic and international news. A report yesterday in Australia showed better-than-expected unemployment numbers, which even if still on the rise, did not match rather grim speculations from economic analysts, helping the Aussie to gain. The International Monetary Fund stated yesterday that 2010 global economic growth will be higher than previously suggested, stopping low-yielding currencies like the yen to continue its rally, and finally bringing investors back to higher-yielding positions like Aussie-priced assets, as commodity prices also rebounded slightly this Thursday.

Analysts indicated that fundamental factors, even if not optimal served as an excuse for traders to profit, selling the overpriced Japanese currency and opting back for higher-yielding positions in stock markets and in currencies like the Australian dollar and its Canadian counterpart, which rebounded after severe losses during the past days. The Australian may continue to rebound if positive news, even if slight ones, help risk appetite to rise once again.

AUD/JPY traded at 72.82 as of 11:51 GMT after bottoming at 70.87 hours earlier. AUD/USD followed the same movement, being traded at 0.7838 from 0.7717.

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.

Earlier News About the Australian Dollar:

• Australian Dollar Hits Two-Week Low on Jobs Data Speculations (2009-07-08)
• Australian Dollar Down After Chinese Comments (2009-06-29)
• NZD Gains for 4th Day Against U.S. Dollar (2009-05-21)
• Australian Dollar Hits 7-month High on Favorable Employment Data (2009-05-07)
• Australian Dollar Hits 3-Week Low on American Financial Concerns (2009-04-21)

This entry was posted on Thursday, July 9th, 2009 at 12:59 pm and is filed under Australian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.