Tradervox.com (Dublin) – The Aussie has strengthened against the greenback as Federal open Market Committee meeting minutes showed that some members wanted additional stimulus. The minutes have encouraged the demand for riskier assets as global stocks rose. The Australian dollar gained the most against the US counterpart while the yen strengthened to new records against the euro. The other south pacific currency –the kiwi, rose against most of its counterparts as commodity related currencies rose. The Aussie gain has also been attributed to the positive consumer confidence report which was released yesterday. US FOMC June meeting minutes showed some official wanted quantitative easing to be started as compared to the extension of operation twist, which was decided upon.
According to John Curran, a currency dealer at Canadian Forex Ltd, investors are searching for clues of third round of quantitative easing, which is giving them some room to take some risk. Further, consumer confidence in Australia advanced by 3.7 percent this month to reach 99.1 percent according to a report by the Westpac Banking Corp-Melbourne Institute released yesterday. The economic conditions in Australia seems to be gaining momentum as another report released earlier this month showed an increase in home-building approvals in May. However, global stocks prices are affecting the currency that is also affected by the economic conditions in Europe and in China.
In a bid to encourage currency trade between Chinese and Australian currencies, the Australian Treasurer Wayne Swan has been involved in talks with China on how to encourage such trade. He is in China this week where he is set to discuss the possibilities of direct convertibility between the Australian dollar and Chinese Yuan for direct transactions carried out in mainland China. The current trade goes through the dollar.
The Australian dollar advanced by 0.7 percent against the euro to trade at A$1.19354 per euro and climbed by 0.6 percent against the dollar to trade at $1.0251. It also gained against the yen by one percent to exchange at 81.77 yen. The kiwi gained by 0.3 percent against the UD dollar to trade at 79.65 US cents and appreciated by 0.7 percent against the yen to exchange at 63.53 yen.
According to John Curran, a currency dealer at Canadian Forex Ltd, investors are searching for clues of third round of quantitative easing, which is giving them some room to take some risk. Further, consumer confidence in Australia advanced by 3.7 percent this month to reach 99.1 percent according to a report by the Westpac Banking Corp-Melbourne Institute released yesterday. The economic conditions in Australia seems to be gaining momentum as another report released earlier this month showed an increase in home-building approvals in May. However, global stocks prices are affecting the currency that is also affected by the economic conditions in Europe and in China.
In a bid to encourage currency trade between Chinese and Australian currencies, the Australian Treasurer Wayne Swan has been involved in talks with China on how to encourage such trade. He is in China this week where he is set to discuss the possibilities of direct convertibility between the Australian dollar and Chinese Yuan for direct transactions carried out in mainland China. The current trade goes through the dollar.
The Australian dollar advanced by 0.7 percent against the euro to trade at A$1.19354 per euro and climbed by 0.6 percent against the dollar to trade at $1.0251. It also gained against the yen by one percent to exchange at 81.77 yen. The kiwi gained by 0.3 percent against the UD dollar to trade at 79.65 US cents and appreciated by 0.7 percent against the yen to exchange at 63.53 yen.
