Australian Dollar Rose on Stronger Commodities

The Australian dollar strengthened for the third day against its US counterpart as the commodities rallied, increasing demand for growth-related currencies. The currency declined against the euro and was unchanged versus the Japanese yen.
The Thomson Reuters/Jefferies CRB Index advanced 0.4 percent. Silver and coffee posted the biggest gains. The commodities rally, as the analysts predicted, and commodity currencies, including the Aussie, follow them. Credit Suisse AG predicted that the Reserve Bank of New Zealand will increase the interest rates by 48 basis points over the next 12 months.
China, the biggest trading partner of Australia, subdued the strength of the Australian dollar, though. The country increased the reserve requirements for lenders to rein the inflation and prevent asset bubble.
AUD/USD closed at 1.0144 after opening at 1.0118 and falling to 1.0088. Meanwhile, EUR/AUD advanced from 1.3447 to 1.3487. AUD/JPY closed at 84.28, almost at its opening level of 84.27.

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