Australian US Dollar Exchange Rate History
Aussie and Kiwi Dollars Advance As Risk Aversion Fades
Aussie and Kiwi Advance For Third Straight Day.
For the third straight day both the Aussie and Kiwi dollars advanced against the Japanese yen as demand for safe haven assets fades. A US report that showed industrial production contracting at a slower rate and the stellar second quarter performance of Intel and Goldman Sachs lifted investor risk sentiment reducing demand for the US dollar and the yen. Australia's 10 year bond yields rose as investors bet that Australia's central bank will raise rates sometime in the next 12 months. Richard Grace of Commonwealth Bank of Australia stated, "The U.S. Economy looks more positive. That's what the bond market reacted to, and it also helped drive the Aussie higher."
Reserve Bank of Australia to Raise Rates.
The Reserve Bank of Australia is expected to raise its benchmark rates by 64 basis points during the next year and the New Zealand will raise its rates by 78 basis points. Federal Reserve figures showed that in June US industrial production fell by 0.4%, the smallest decrease in eight months. Greg Gibbs, a foreign exchange strategist based in Sydney said, "A sense of greater stability in global markets and a higher yield advantage, following stronger data, may lift the Australian dollar back above 80 (US cents) near term, possibly up to 81."
New Zealand Economy Recovering Says Prime Minister.
The New Zealand dollar strengthened after Prime Minister John Key said that the New Zealand economy is starting to recover from the recession. Citing conversations with Reserve Bank Governor Alan Bollard Prime Minister Key stated, "That tallies with what he's been privately telling us, that we're starting to come out of this recession, which is good news. The governor is in a good position to assess both the international markets and the domestic market."
Euro and Pound Up.
The rise in risk appetite has affected global currency exchange rates. The euro traded at $1.41 as investors sought out higher yielding currencies. Sterling rose to $1.6385 from $1.6280. Although some analysts caution that the current rise in risk appetite is not sustainable forex investors seem to think otherwise.
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Australian dollar could fall to US50c: economists – Sydney Morning Herald
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