The Australian dollar is being overtaken by the Canadian dollar among commodity currencies as the safety of Canada’s banking system and ties with the U.S. economy spur investors to buy the loonie.
The dollar fell against higher – yielding currencies including the Australian dollar and South African rand as stock markets advanced on signs the global economic recovery is strengthening.
The Australian dollar is profiting from speculations that a new series of interest rate hikes is likely to follow in the South Pacific nation, as its economy continues to improve, allowing the currency to gain versus its main rivals on foreign-exchange markets.
The Aussie profited today from a risk driven scenario in global markets and extended yesterday’s gains after central bankers in the nation said that interest rates may be hiked further this year if the economy continues to recover.
The Australian government brought risk appetite high in the beginning of this Thursday trading session after an employment report published in the country showed better than expected figures, attracting investors to purchase assets in the South Pacific region.
The yen and the dollar fell against the Australian and New Zealand currencies as signs of a stronger economic recovery and assurances over European nations’ debts boosted demand for stocks and higher-yielding assets.
The Australian Dollar is a strong dollar at this time and the economy is doing well compared to the U.S. Dollar. However there is going to be a temporary pullback in the Aud/Usd because the pair has been so bullish and it is due for a pull back.
