By TraderVox.com
Tradervox.com (Dublin) – The Aussie has strengthened the most in 11 weeks against the US dollar as Asian stocks extended a global advance which boosted the demand for riskier assets. The Australian dollar has gained for the firth day against the US dollar prior to a report in the US expected to show jobless claims increased last week. Poor US jobs data is expected to increase speculation of a QE3. Commodity related currencies advance was supported by the slowing volatility in major currencies which lead to demand for currencies from countries with higher interest rates.
Jeremy Jukes, a currency strategist at Velocity Trade Ltd in Auckland indicated that the south pacific currencies are looking strong as the market grapples for high yielding assets. He also added that the weakness in US data has facilitated the demand for riskier assets as there are more speculations about additional stimulus. It is estimated that first time application for jobless claims increased by 15000 in the week ending July 14 to register a total of 365,000. These figures are expected to be confirmed today as the Labor Department releases the official figures.
The Canadian dollar increased against the US dollar after the Fed released its Beige Book report yesterday where it indicated that the economy had grown at a modest to moderate pace last month. The report also noted that there has been contraction in Retail Sales and Manufacturing in some areas in the country. The loonie also decline as implied volatility for Group of seven currencies held its yesterday’s low of 8.67 percent which is the lowest it has been since November 2007.
The Australian dollar advanced by 0.3 percent against the US dollar to exchange at $1.0398, this is the highest level since May 1. The New Zealand dollar rose by 0.1 percent to trade at 80.14 US cents. It had climbed by 0.3 percent yesterday.
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