Forex News

The yen started this Thursday’s session in Asia gaining versus currencies regionally and globally, on speculations that local investors are repatriating capital before the Japanese fiscal year ends in the following weeks.

The Australian dollar is profiting from speculations that a new series of interest rate hikes is likely to follow in the South Pacific nation, as its economy continues to improve, allowing the currency to gain versus its main rivals on foreign-exchange markets.

The New Zealand dollar started this Friday losing versus currencies from its main trading partners as central bankers from Australia and the U.S. are adopting a hawkish tone leaving the New Zealand dollar less attractive as rate hikes are not forecast in the short term for the kiwi nation.

The Aussie profited today from a risk driven scenario in global markets and extended yesterday’s gains after central bankers in the nation said that interest rates may be hiked further this year if the economy continues to recover.

Even if China’s new domestic economic policies have been impacting markets negatively since the the beginning of the year, the Australian dollar managed to climb slightly versus important currencies today as analysts affirm that the Asian economy will continue to grow despite new restrictions imposed by Chinese central bankers.

The yen started this Thursday losing versus the main South Pacific currencies as reports in the region brought risk appetite high in foreign-exchange markets, after confidence that the economic pace will accelerate in Australia and the New Zealand.

The Australian government brought risk appetite high in the beginning of this Thursday trading session after an employment report published in the country showed better than expected figures, attracting investors to purchase assets in the South Pacific region.

The Australian dollar managed to gain versus lower-yielding currencies before a report to be released this week in the country is likely to show an advance in inflation in the last year’s last quarter, helping speculations that a series of interest rates in the country will restart.

The Australian dollar was one of the most affected currencies today as speculations that Chinese lending requirements will slow down the global economic recovery impacted traders’ sentiment, declining appetite for high-yielding currencies.

Once again interest rates are fueling a rally for the Aussie dollar as it happened in the second half of the last year, when the South Pacific currency ranked among the best performing options in foreign-exchange markets.