Aussie Climbs to 4-Week High on Risk Appetite

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The Australian dollar, nicknamed the Aussie, advanced as gains in commodities and Asian stocks revived demand for higher-yielding currencies. The AUD also gained more than one percent on the low-yielding Yen, to 78.99 JPY, touching its highest in nearly a month.

The Australian dollar benefited exceptionally from the combination of renewed risk appetite in the currency markets following China's announcement that its exports had risen 48.5% for the month of May with an equally impressive number for imports of 48.3%. China is Australia's biggest customer, importing a large amount of Australian exports.

The rally in the AUD/USD last week was due to ANZ Job Advertisements data that showed an increase of 4.3% month-on-month which indicates employers are confident despite the recent interest rate hikes made by the Reserve Bank of Australia ( RBA ).

In addition, the Australian unemployment rate fell to 5.2%, adding 26.9K new jobs to the Australian economy in the month of May. Both numbers beat the consensus of 5.4% for unemployment and 20.1K new jobs. The Aussie, which fell in April and May as the EUR tumbled, breached $0.8552 vs. the US dollar, its highest level in four weeks, and now faces resistance between the levels of $0.8670-0.8710.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Forex and Currencies


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