Australian dollar is maintaining gains today, heading a little bit higher as some risk appetite returns to the markets. Also helping the Aussie is the fact that gold prices are gaining again. With a little optimism, and help from commodities, Aussie is gaining ground against the major currencies.
Risk appetite has been improved by hopes that Greece will put in a pro-bailout government next month. Even though there are plenty of problems with Spanish banks, there is still hope in the eurozone, and that is providing enough positive sentiment to help the Aussie right now. Also helping is the fact that housing data in the United States, as measured by the Case-Shiller Index, is remaining steady.
Aussie is also receiving support as a commodity currency. Gold prices have moved higher, breaking through the $1,575 an ounce barrier. Additionally, news that China is planning stimulus is helpful as well, since China is a major trading partner. Some worry that an expected interest rate cut by the Reserve Bank of Australia will weaken the Aussie, but for now the Down Under currency is showing strength.
At 13:45 GMT AUD/USD is higher at 0.9852, up from the open at 0.9815. EUR/AUD is lower at 1.2714, down from the open at 1.2756. GBP/AUD is lower at 1.5891, down from the open at 1.5956.
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