G-7 Comments Set Australian Dollar High

The Australian dollar posted today its first gains after a rather bearish trend last week as the Group of 7 did not confirm speculations which suggested it would stress on the importance of a strong U.S. dollar to stabilize the world economy, favoring again high-yielding currencies.
The Australian dollar has been one of the best performing currencies this year as risk appetite surged with the first signs of economic improvement in multiple parts of the world. This Monday, after a rather risk averse past week prior to the Group of 7 meeting, the Aussie managed to climb as both international and domestic factors provided support for the South Pacific currency to revert its previous losing trend. The G-7 did not give as much importance to a strong dollar as analysts expected, bringing risk appetite back to markets also adding to optimistic news in Australia, as services industry shrank less than expected in the past month.
The Aussie definitely remains as one of the best bets in currency markets for this week, according to specialists. A favorable domestic scenario combined with the G-7 meeting outcome only adds to the already optimism situation in Australia which is expecting interest rates to be raised before the end of year, attracting overseas investors to purchase Aussie priced assets.
AUD/USD traded at 0.8749 as of 12:06 GMT from an opening rate of 0.8670 yesterday. AUD/JPY also climbed, touching 78.65 from 77.53.

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