The Australian dollar headed today to the highest level since 1982 against its US counterpart as the signs of the faster economic growth in the US increased the appeal of the higher-yielding currencies. The currency declined versus the euro.
The Manufacturing Index of the Federal Reserve Bank of Richmond showed the increase to 25 in December from 9 in November. Tomorrow’s report about the unemployment claims is expected to show the decline from 420,000 to 416,000 last week. The MSCI World Index of shares jumped as much as 0.6 percent to 1,283.68 yesterday, recovering all its losses since the beginning of the financial crisis in 2008.
Other fundamentals continue to support the Australian currency. China, Australia’s main trading partner, continues to be the economic power house. The relatively high interest rates in Australia continue to attract the foreign investors.
AUD/USD traded near 1.0193 today as of 01:24 GMT after it rallied yesterday from 1.0099 to 1.0178. EUR/AUD rose from 1.2990 to 1.2995.
If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
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