Australian Dollar Gains Versus Peers as Fed Taper Bets Trimmed The Australian dollar rose versus most of its 16 major peers as expectations of a looming reduction in Federal Reserve bond purchases were damped, buoying demand for higher-yielding assets. The Aussie climbed against the U.S. dollar following a comment by Group of 20 nations that they will pursue “carefully calibrated and clearly communicated” policy moves and after officials in China, Australia’s biggest trading partner, moved to scrap a rule that had constrained lending by its banks. New Zealand’s currency remained higher after a weekly advance as Asian stocks gained. “Anything over 93 cents for the Aussie and you’ve got to start accumulating shorts,” Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia (CBA), said in reference to bets on an asset’s decline. “The timing for Fed tapering might fluctuate, but the endpoint’s still the same.” The Australian dollar gained 0.3 percent to 91.99 U.S. cents as of 6:13 p.m. in Sydney, after climbing 1.4 percent last week. It slipped 0.3 percent to 92.01 yen. New Zealand’s currency was little changed at 79.18 U.S. cents, following a 1.8 percent advance in the five days ended July 19, the most since the period through June 14. It lost 0.6 percent to 79.18 yen. The MSCI Asia Pacific Index of shares gained 0.5 percent. Australia’s 10-year yield fell two basis points, or 0.02 percentage point, to 3.65 percent after earlier touching 3.63 percent, the lowest since June 20. New Zealand’s two-year swap rate, a fixed payment made to receive floating rates that is sensitive to interest-rate expectations, dropped six basis points to 3.155 percent, the lowest close since June 19. bloomberg/news/2013-07-22/australian-dollar-gains-versus-peers-as-fed-taper-bets-trimmed.html
Posted on: Mon, 22 Jul 2013 09:36:51 +0000
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