The Australian dollar rallied today as global stocks advanced on hopes that central banks of developed nations will spur economic growth. The Australian currency is linked to growth, therefore it profited from such hopes. The currency lost gains versus the euro.
The Thomson Reuters/Jefferies CRB Index of commodities advanced 0.2 percent, posting the first gain since August 31. The rally boosted the appeal of the Aussie as a commodity currency. The MSCI Asia Pacific Index of stocks was up as much as 2.7 percent.
Yesterday’s announcement of the European Central Bank led to the optimistic mood among Forex traders. Today’s employment data from the United States added caused speculations about quantitative easing from the Federal Reserve, bolstering risk appetite. As a result, the market was very favorable to currencies with higher yield and the Aussie profited from that.
AUD/USD jumped from 1.0280 to close at 1.0391 and AUD/JPY was up from 81.10 to the closing price of 81.27, while its intraday high was at 81.73. EUR/AUD rose from 1.2283 to 1.2329, while intraday it touched the low of 1.2231.
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