Investing.com - The Australian dollar is notching an impressive
performance against its U.S. rival to close the week on the back of
supportive comments from Reserve Bank of Australia Governor Glenn
In Asian trading Friday, AUD/USD jumped 0.49% to 1.0299. The pair
was likely to find support at 1.0409, the low of February 3 and
resistance at 1.0320, the high of February 18.
On Thursday, Stevens hinted that the central bank is comfortable
with Australian interest rates as they currently stand and that RBA
is not likely to engage in looser monetary policy. Also on
Thursday, a research report issued by U.S. fund manager indicated
the International Monetary Fund could give the Aussie reserve
currency status this year.
The other reserve currencies are the U.S. dollar, euro, British
pound, Japanese yen and Swiss franc. IMF has also signaled that the
Canadian dollar could become a reserve currency as well.
Earlier today, Australian Treasure Wayne Swan said he believes the
strong dollar will not deter foreign investors because of his
country's strong underlying economic fundamentals. Swan told a
business economists group in Sydney that foreign investors are
attracted to Australia because of solid government, sound public
finances and a tolerable debt level.
While Australia's AAA credit rating is a source of allure for many
investors, it is still widely believed that the Aussie is
overvalued relative to the greenback. The Aussie has been at or
above parity with the U.S. dollar since late 2008. During that
time, the Aussie is the best-performing developed market currency
against the U.S. dollar.
Elsewhere, EUR/AUD fell 0.43% to 1.2817 while GBP/AUD slipped 0.48%
to 1.4812. AUD/JPY jumped 0.51% to 95.92 while AUD/NZD rose 0.13%
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