The Australian dollar strengthened against its major counterparts after stocks and commodities rallied and the measure of price volatility fell.
The Chicago Board Options Exchange Volatility Index, or VIX, dropped 6.1 percent to 18 yesterday, posting the biggest decline over the same number of days in 28 months. The VIX has lost 39 percent since March 16. The Asian stocks advanced on the anticipation of a faster economic growth in the region.
The Australian dollar, nicknamed the Aussie, also rose as commodities advanced. The advance can be very helpful to the Aussie as it’s considered a commodity currency. The Aussie gained 2.3 percent this week.
AUD/USD traded at 1.0205 as of 2:30 GMT today after it advanced yesterday from 1.0130 to 1.0208. EUR/AUD traded at about 1.3884, following the yesterday’s drop from 1.3908 to 1.3881. AUD/JPY traded near 82.66 after it jumped on the previous trading session from 81.99 to 82.67.
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