Aussie, Kiwi capitalize on Asian equities' strong performance

Posted On: December 21, 2011
South Pacific currencies climbed Wednesday to their top values in seven days against the world's reserve currency, according to Bloomberg.

The Australian and New Zealand dollars benefited from the prolonged bullishness of Asian equities, which enhanced the demand for assets that deliver higher yields. The Aussie touched its all-time high when held against the shared currency of the European Union. The Kiwi's allure waned amid data stating New Zealand's deficit of current accounts has grown.

"It certainly feels like the risk-on appetite will continue throughout the course of Asian session today," foreign exchange executive director Matt Brady with JPMorgan Chase in Sydney told Bloomberg. "For the Aussie, it will be a gradual grind higher."

The value of the Aussie increased 0.8 percent Wednesday morning against the U.S. dollar as compared to its value at Tuesday's closing. The monetary unit also gained 0.6 percent of its value against the Japanese yen and the gains to the euro were 0.5 percent.

TVNZ reports the climb of the Kiwi marks the first time it touched 77 U.S. cents in one week, which comes one day prior to the release of the final report holding data about the nation's Gross Domestic Product.

Category: Industry News


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