Australian dollar is gaining ground today, heading higher as risk appetite surges in the markets. Even though gold is struggling a bit today, the Aussie has the upper hand against its major counterparts as investors enthusiastically cheer the latest US economic data.
Recent disappointments out of China are fading a bit today as US economic data steals the show and sends risk appetite soaring. The Australian dollar is heading higher today as Forex traders look for yield, taking advantage of the enthusiasm following the latest jobs report out of the United States.
With the April employment data coming in, and showing more jobs added to the economy than expected, as well as an unemployment rate dropping to 7.5 per cent, there is a lot of enthusiasm. The Dow hit 15,000 before pulling back a bit, and the S&P 500 is above 1,600.
This good news is prompting gains for commodity currencies like the Australian dollar. Even though there are expectations for a rate cut by the Reserve Bank of Australia on Tuesday, for now the Down Under currency is finding support in the general enthusiasm for risk.
At 15:32 GMT AUD/USD is up to 1.0312 from the open at 1.0249. EUR/AUD is down to 1.2720 from the open at 1.2749. GBP/AUD is down to 1.5100 from the open at 1.5159.
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