South Pacific Currencies Advance against Major Currencies

By TraderVox.com

Tradervox (Dublin) – The south pacific dollars advanced today against most of their peers prior to a US report expected to show that the labor market has improved. The Kiwi and Aussie also found support as Asian stock declined. The Australian dollar had decreased against the New Zealand dollar as traders speculated that the Reserve Bank of Australia is going to cut interest rate in the coming month.

A report expected in the US is estimated to show that the employment increased by 205,000 in March, which would make this the fourth straight month the employment has grown above the 200,000 mark.  Analysts are saying that this is creating confidence in the US recovery processes hence bolstering risk sentiment that is increasing the demand for the south pacific currencies. In addition, almost 90 percent of traders are expecting the RBA to lower the interest rate to 4 percent.

According to Jesper Bargmann, traders are selling their greenback in favor of the south pacific currency ahead of Friday’s payroll release that is expected to bolter risk appetite. Bargmann is a Regional Head of Spot Trading for major currencies at Royal Bank of Scotland Plc in Singapore. Other analysts are claiming that the positive job report will increase the demand for risk hence pushing the Kiwi and Aussie higher against major currency.

The Australian Dollar increased against the greenback by $1.0313 at the close of trading in Sydney, which is 0.4 percent increase from the close the previous day. The New Zealand dollar was up by the same percentage against the dollar trading at 81.84 US cents at the same time in Sydney. The Aussie remained weak against the kiwi exchanging at NZ$1.2603; the Aussie traded at its October 6 lowest of NZ$1.2576 the previous day.

Traders are expecting the RBA decision on the monetary after the members resolved to wait for data on prices to make their decision on whether they should review the interest rate downward. Analysts are suggesting that the market expects the RBA to reduce the current high interest rates.

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