South Pacific Dollars Gain on Labor Data and ECB Decision

By TraderVox.com

Tradervox.com (Dublin) – South pacific dollars gained against major peers as Asia Stocks rallied on the European Central Bank bund purchases decision spurred risk demand in the market. The Australian dollar advanced against the greenback for the first time in almost a week as jobless rate in the country declined last month, indicating that employers in the mining sector are still hiring. The Labor Department report released yesterday showed that unemployment declined from 5.2 percent to 5.1 percent against the market expectation of an increase to 5.3 percent.

Kit Juckes, who heads the Foreign Exchange Research department at Societe Generale SA in London, said that the Australian dollar is seen to be defying market fundamentals. He cited that the global manufacturing is declining as US data has shown in the recent times. The two south pacific dollars increased as the Standard & Poor’s 500 Index gained by 2 percent, the strongest since August 3. The advance against the US dollar was also supported by speculations that the Fed may add stimulus. The US Labor Department will release its job report today. Andrew Slater, has predicted that the Aussie will be supported today as the market evaluates the ECB bond-purchasing plan; the risk-on mood will keep the Aussie and Kiwi strong.

The MSCI Asia Pacific Index of stocks advanced by 1.8 percent today following a 1.9 percent gain yesterday in the World’s MSCI Index. The Thomson Reuters & Jefferies CRB Index of row materials also increased for the first time since August 31 by 0.2 percent. The Australian dollar advanced by 0.2 percent to $1.0307 in Sydney after increasing by 0.9 percent to $1.0284 yesterday in New York. It advanced by 0.3 percent against the yen to touch 81.37 yen after it had increased 1.3 percent to 81.10 yen yesterday in New York.

The New Zealand dollar added 0.1 percent today in Sydney against the greenback to trade at 80.25 US cents. It had gained by 0.9 percent yesterday in New York to exchange at 80.15 US cents where it gained 1.5 percent against the Yen to trade at 63.20. It has advanced by 0.2 percent today in Sydney to trade at 63.34 yen.

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