The Australian dollar rallied after consumer prices in China increased more than economists estimated, supporting demand for higher yielding assets.
New Zealand’s dollar rose versus most of its major peers as Asian stocks extended gains and food prices in the nation rebounded. Australian bonds extended yesterday’s advance. Reserve Bank Assistant Governor Christopher Kent said today a weaker currency will help the economy return to trend growth and signaled there may be a correction in the exchange rate.
“The Aussie does seem bid quite well,” said Divya Devesh, a foreign-exchange analyst at Standard Chartered Plc in Singapore. “There’s little reason to be pessimistic about China. Compared to January, risk appetite looks much better.”
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.