Forex News

The Japanese currency declined in the beginning of this Thursday’s session on Australia’s better than expected employment data, which increased attractiveness for riskier assets as the South Pacific economy recovery improves confidence among traders.

The Australian dollar climbed after employment figures were published in the country with better-than-expected numbers, adding confidence that the economic recovery in the country is accelerating its pace, spurring demand for assets in the South Pacific region.

The Australian dollar fell sharply versus lower-yielding currencies today as a real estate report declined optimism regarding the South Pacific economy, in a day were commodities and equities markets which have a strong correlation with the Aussie, declined.

The Australian currency touched the highest level in 2 years versus the euro as commodities rates are fueling the Aussie’s rally, which also gained considerably versus the greenback during today’s session.

The Australian dollar may start the year gaining against refuge currencies like the yen, and currently not so attractive currencies like the pound and the euro as a global recovery expected for 2010 may trigger stronger demand for commodity exports from Australia, favoring the national currency in foreign-exchange markets.

The Australian dollar posted a significant decline this week and may extended its losses versus currencies like the U.S. and the Canadian dollar after policy makers affirmed that interest rates may not be hiked further in the short term, decreasing attractiveness for the Aussie dollar in currency markets.

The Australian dollar has been one of the best performers in currency markets during the past few months as it was the first country to raise interest rates among the wealthy nations, today the sentiment towards the Aussie changed after surprising statements from the country’s financial authorities.

After trading near $0.90 in the end of the last week as the U.S. dollar rose against its Australian counterpart, the Aussie, pushed by renewed risk appetite, managed to climb significantly not only versus the greenback but also lower-yielding currencies.

After declining considerably yesterday versus the greenback, the Aussie dollar recovered today and is heading towards another weekly gain versus its U.S. counterpart as a report is likely to post favorable employment figures in the world’s largest energy consumer, raising demand for commodity linked currencies.

The Australian dollar rose versus most of the 16 main traded currencies as interest rates were once again raised in the country, making the Aussie currency one of the most attractive investment in foreign-exchange markets this year.