By TraderVox.com
The kiwi and the Aussie increased against major currencies as the Asian stock rallied increasing the demand for riskier assets. Reports from New Zealand showing an increase in the food and house prices in the month of February boosted the demand for kiwi which gained against all its major peers.
The Australian dollar increased against the dollar and the Yen despite negative home loans report and the declining business confidence. The increase in the currency might be attributed to markets appetite for riskier assets as Fed is expected to shelve its quantitative easing measures. The currency increased against the yen as BOJ decided to keep interest rates unchanged and indicated no further asset purchases.
Kumiko Gervaise, who is an analyst in Tokyo, indicated that the firm footing of the stocks had resulted to the strengthening of the South Pacific currencies. The Aussie increased against the US dollar by 0.2 percent to settle at $1.0541 from a low of $1.0474, which is the lowest it has been since January 25. Against the yen, the Australian dollar traded at 86.49 yens per AUD, having changed a little from yesterday’s close of 86.48 yen.
New Zealand’s food and house prices increased by 0.6 and 0.8 percent respectively according to a report from The Real Estate Institute of New Zealand Inc; this has resulted to the strengthening of the kiwi by 0.5 percent against the dollar to settle at $0.8218. The currency also climbed against the yen by 0.2 percent to settle at 67.41 yen after it had dropped 0.7 percent yesterday.
The two South Pacific dollars gained against major peers today after a three-day decline. This shows that the market is ditching the safe haven assets and going for riskier assets. However, this trend is expected to change after the FOMC decision is announced later today in the US.
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