Australian Dollar Follows Rally of Stocks

The Australian dollar rallied today as advance of stocks increased appetite for risk among investors. Equities gained as fears of the fiscal cliff in the United States receded.

The risk sentiment improved as US President Barack Obama showed confidence in a positive resolution of the current dangerous fiscal situation in the USA. The MSCI Asia Pacific Index of shares advanced 0.9 percent. The Australian currency was especially stronger against the Japanese yen that was hurt by expectations of monetary easing from Japan’s central bank.

AUD/USD rose from 1.0349 to 1.0415 as of 15:47 GMT today. AUD/JPY climbed from 84.19 to 84.54 — the highest rate since April 23.

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