The Australian dollar rose today as macroeconomic reports from the South Pacific country were relatively good and the general traders’ sentiment was in favor of growth-related currencies. Today’s monetary policy meeting of the US Federal Reserve remains the major risk for the Aussie.
The Conference Board Leading Economic Index for Australia increased 0.2 percent in November. The National Australia Bank Business Confidence index remained at 6 and the report said:
Confidence has remained surprisingly elevated following the post-election jump, and could potentially remain at these levels for longer than previously thought given that the conditions index has begun to respond.
The report added that an improvement of the Australian economy should be near, but most indicators will remain weak in the near future.
The positive domestic fundamentals added to the attractiveness of the Aussie and the overseas news helped the currency too. Yet the Fed may yet hurt the currency if the US central bank decides to reduce monetary stimulus yet again.
AUD/USD rose from 0.8777 to 0.8804 and AUD/JPY advanced from 90.34 to 90.90 as of 4:28 GMT today. EUR/AUD dropped from 1.5568 to 1.5502.
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