The Australian and New Zealand dollars rose for a second day versus the yen as stronger data in the world’s two largest economies boosted demand for higher-yielding assets.
The two South Pacific nations’ currencies gained after a report from China showed exports rose last month by more than forecast in a sign global demand is helping sustain a recovery in the world’s second-biggest economy. A Dec. 6 jobs report in the U.S. showed employers added more positions than predicted in November and unemployment fell to a five-year low.
“This could be the beginning, at least for a few weeks, of the Aussie dollar trading more linked to risk appetite,” said Jim Vrondas, the chief currency and payment strategist at OzForex Ltd. in Sydney. “A recovery in the U.S. economy is a positive for global economic growth, so what we saw was not just a squaring of short Aussie positions but positive risk appetite that’s come back into the market.” A short position is a bet an asset’s price will decline.
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