Aussie Rises on Employment Growth & Interest Rates Outlook

The Australian dollar rose today as the good reports this week signaled about the increasing pace of the economic recovery and on the outlook for the interest rates increases.

The attractiveness of the Australian currency was boosted by the good employment reports. The Australia and New Zealand Banking Group reported that the job advertisements on the internet and in newspapers increased by 2.9% in November, signaling about the rising employment. This was confirmed by the report of the Australian Bureau of Statistics, which showed the growth of the employment by 54,600.

The analysts predict that the Reserve Bank of Australia would increase the interest rates by 40 basis points over the next year. For now the Bank kept the rates steady at 4.75 percent, decreasing the appeal of the Aussie. The gains of the currency were also trimmed by the concerns about the possible plans of China to slow its economic growth.

AUD/USD closed at 0.9851 after opening at 0.9836 and rising to the intraday high of 0.9896. EUR/AUD closed at 1.3424 after it opened at 1.3456 and declined to the intraday low of 1.3378. AUD/JPY opened at 82.35 and closed at 82.69.

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