Australia’s dollar traded 0.3 percent from the seven-week high it reached yesterday as signs the nation’s economy is stabilizing prompted investors to trim bets on interest-rate cuts by the central bank.
The so-called Aussie headed for a third weekly advance as an index of leading economic indicators rose. Reserve Bank of Australia Governor Glenn Stevens will speak in Sydney next week. New Zealand’s dollar was near a two-week high after a private report showed an gain in job advertisements. Demand for both currencies was limited as prolonged negotiations on a bailout for Cyprus damped risk appetite.
“Expectations for an imminent rate cut by the RBA have been pared back,” said Takuya Kawabata, an analyst at Gaitame.com Research Institute Ltd. in Tokyo, a unit of Japan’s largest currency margin company. “Even as risks around Europe linger, the Australian dollar has been supported by positive domestic factors. There don’t seem to be serious concerns in the market yet that the crisis in Cyprus will spread to other nations such as Italy and Spain.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.