By TraderVox.com
Tradervox.com (Dublin) – The New Zealand and Australian dollars remained high against the US dollar after both south pacific countries registered better-than-expected building approvals. The Aussie advanced against most of its peers prior to a report expected to show improvement in China PMI which is a bright spot for exporters in Australia. The Aussie and kiwi’s gains were supported by demand for Asian stocks and as US stock-index futures boosted demand for higher yielding assets. In addition, traders have reduced their bets the Reserve Bank of Australia will reduce interest rates when it meets next week.
According to khoon Goh, who is the senior currency strategist at Australia & New Zealand Banking Group Ltd in Singapore, the building approvals from the two south pacific currencies were stronger than expected and the impact of interest rate cuts done by the RBA in the past year is starting to yield some results. Goh also indicated that this has boosted the Australian dollar. The two south pacific currencies strengthened after the MSCI Asia Pacific Index of shares rose by 0.9 percent. The Standard & Poor’s 500 Index futures expiring on December appreciated by 0.1 percent, as the US Securities and Exchange Commission canceled bonds and capital markets for two days due to storm Sandy. The New York Stock Exchange is expected to be opened today.
According to Goh from ANZ, the Aussie has continued to gain as a result of lower expectation of a rate cut from the RBA. He however, continued to project that the central bank may cut rates in December. The Aussie may hold its strength through tomorrow when the Chinese PMI data is released. China is Australia’s largest trading partner. Junichi Ishikawa, who is an analyst in Tokyo at IG Market Securities, indicated confirmed that investors are expecting better figure from China.
The Australian currency gained by 0.1 percent against the dollar at the close of trading yesterday to settle at $1.0375. It traded 0.1 percent stronger against the yen, exchanging at 82.60. The New Zealand dollar was selling at 82.10 US cents at the close of trading in Sydney, up from 82.08 cents the previous day.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
