Aussie Reaches Four-Week High vs. Euro
The Australian dollar rose against its US counterpart and closed at the highest level in four weeks versus the euro on positive data from the United States. The Aussie fell against the Japanese yen as drop of stocks reduced investors’ demand for riskier assets.
The MSCI Asia Pacific Index of stocks dropped 1 percent today, allowing the yen to gain on risk aversion. News from Europe added to pressure on the Aussie.
Yet news from the United States was good and helped the Australian currency to gain against some other majors, including the greenback and the euro. US economic growth beat expectations and consumer sentiment improved.
As for news from Australia itself, speculators reduced their bets that the Reserve Bank of Australia cut its interest rates. Previously, most investors were certain that an interest rate cut will occur, but strong Australia’s economic growth made them to change their view.
AUD/USD rose from 1.0345 to 1.0366, rebounding from the daily low of 1.0303. EUR/AUD fell from 1.2496 to 1.2472, the lowest close since October 2. Meanwhile, AUD/JPY edged down from 83.04 to 82.51.
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Earlier News About the Australian Dollar:
- Aussie Posts Mixed Results Ahead of Inflation Data (2012-10-22)
- Australian Dollar Falls, But Keeps Weekly Gains (2012-10-20)
- AUD/JPY Advances, AUD/USD Snaps Gains (2012-10-18)
- Australian Dollar Rallies Despite Dovish Minutes (2012-10-16)
- Rising Employment Positive for Australian Dollar (2012-10-11)