Australian dollar is getting a boost today, heading higher after the Bank of Japan announced a plan to further ease the situation for the yen. The move is expected to help the Japanese economy, and the Australian dollar is getting a boost, similar to the gains seen at the end of last week with the quantitative easing announcement from the United States.
Aussie is seeing some support after losing ground earlier this week. Yesterday, the news about disappointing Chinese data weighed on the Down Under currency. China is Australia’s largest trading partner, and news of slowing economic growth in China wasn’t helping. It also wasn’t helping that commodities were losing ground yesterday.
Today, commodities — especially gold — are making some advancements, and news of more economic stimulus around the world is helping the Aussie. The Reserve Bank of Australia has pointed out that a relatively strong Australian dollar has helped keep inflation at bay, and that, if needed, there is room to cut rates anyway. Aussie still has one of the higher interest rates among developed countries, and that is helping the currency in some instances.
At 13:17 GMT AUD/USD is up to 1.0452 from the open at 1.0451. EUR/AUD is down to 1.2459 from the open at 1.2477. GBP/AUD is down to 1.5508 from the open at 1.5537.
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