Aussie Dollar Reaches New Record vs. US Dollar

The Australian dollar decided that its rally doesn’t need to stop and continued its ascent, posting the new record high versus the US dollar.

The reason for the rally of the Aussie is the same as for other commodity currencies — the advancing prices for raw materials, caused by the prospect of the economic recovery. Analysts predicted that the factory orders in the US rose 1.1 percent in February. Forecasts also promise the report on April 1 will show that China’s Purchasing Managers’ Index advanced from 52.2 to 54 in March.

The Reuters/Jefferies CRB Index of raw materials gained 6.4 percent so far this year. That’s the good news for the currency of Australia, as commodities make up a majority of the nation’s exports. The Standard & Poor’s 500 Index of U.S. stocks added 4.9 percent since the beginning of 2011.

AUD/USD rose from 1.0289 to 1.0323 as of 4:34 GMT today and reached the all-time higher of 1.0331 earlier. EUR/AUD dropped from 1.3711 to 1.3644. AUD/JPY advanced from 84.85 to 85.60. The Aussie is heading for the third quarterly gain versus the greenback and the yen.

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