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AUD rose to the highest in three weeks on positive data

February 6, 2014

The Australian dollar inclined to the highest in three weeks against the U.S. dollar, after a series of positive fundamentals were released. Realizing a trade balance surplus besides an incline in business confidence helped the Australian dollar to gain against major currencies. We may see continuous negative pressures over the Australian currency, but this week held a lot of support for it. The central bank`s intentions to raise interest rate to face inflationary pressures, pushed AUD up in the beginning of this week, and then more positive signs of recovery appeared backing the currency to gain. Moreover, data released Thursday showed the Australian trade balance recorded a surplus of AU$468 million compared with a previous deficit of AU$118 million. Business confidence rose to 8 from 5, encouraging investors to buy the Australian dollar. Investors` appetite for risk increased after it was limited in the last period, so AUD managed to offset some losses seen in last week`s sell off. AUD/USD rose after today`s fundamentals to the highest in three weeks at 0.8979, after recording a low of 0.8919. The Australian dollar also gained against yen to the highest in two weeks at 91.25, after today`s kick start at 90.56. New Zealand dollar was also supported by the Australian cheerful data and rose to 0.8247 against the federal currency, and it also picked up against yen to be trading around 83.71.

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Source: Financial Markets

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