AUD Rises on Better than Expected Japanese GDP Data
February 15th, 2010 Posted in Aussie - Kiwi
The Australian Dollar rose against 12 of the 16 most-traded currencies after better than expected Japanese GDP data was released overnight. Gross domestic product in Japan, Australia’s second-largest trading partner, rose at an annual 4.6% pace in the fourth quarter, more than the 3.5% median estimated by economists. This prompted speculations that a recovery in the region will boost demand for higher yielding assets.
Australia’s Dollar rose to 80.10 Yen from 79.85 yen in New York late last week. It is currently trading at 89.05 U.S. cents from 88.78 cents. New Zealand’s Dollar gained to 62.92 yen from 62.76 yen in New York on Feb. 12. Australia’s Dollar was also boosted before the Reserve Bank of Australia (RBA) tomorrow releases minutes of its February meeting.
Gains, however, were limited after the People’s Bank of China said that the reserve requirement for banks will increase 0.5 percentage point effective Feb. 25. China is Australia’s biggest trading partner and Asia’s second largest economy. Efforts to curb its growth may hurt demand for commodities, which are a majority of Australia exports.
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Tags: AUD forecast, AUD/USD, AUD/USD trading
