The Australian Dollar firmed against the Pound and surged to a fresh four-week high against the US Dollar after it was buoyed by positive domestic confidence data and a run of positive Chinese economic figures.
According to yesterday’s business confidence report released by the National Australian Bank, confidence amongst the South Pacific nation’s business sector remained steady last month which was a contrast to the previous decline seen in the wake of the Australian government’s budget.
The ‘Aussie’ is finding strong support from investors seeking higher yielding assets following last week’s decision by the European Central Bank to cut interest rates and introduce a negative deposit rates for the Eurozone’s banks.
“The real underlying theme with the Aussie Dollar is this global surge for yields, we’ve seen the US data improve and we’ve had better data from China. Most commodity currencies have edged higher, we’ve also seen the iron ore price recover a fraction,” said Stuart Ive a senior client advisor at OM Financial.
Against the Euro the ‘Aussie’ climbed to its best level in six-weeks as investors went on the hunt for higher yielding assets elsewhere.
With the rise in investors seeking higher yields some economists are forecasting that the Australian Dollar could reach parity with its US relation by the end of the year. Official data showed that foreign investors bought close to half of all
Australian bonds in the first quarter of the year.
Australian Dollar (AUD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.9383 ,
Australian Dollar,,Pound Sterling,0.5600 ,
Australian Dollar,,Euro,0.6929 ,
Australian Dollar,,New Zealand Dollar,1.0979 ,
US Dollar,, Australian Dollar ,1.0656 ,
Pound Sterling,, Australian Dollar ,1.6456 ,
Euro,, Australian Dollar ,1.4426 ,
New Zealand Dollar,, Australian Dollar ,0.9111 ,
[/table]
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