Aussie Approaches Highest Level Since November Before Jobs Data
January 18, 2012, 1:41 PM ESTBy Candice Zachariahs
Jan. 18 (Bloomberg) -- Australia’s dollar approached the strongest level versus its U.S. counterpart in more than 11 weeks before a report that’s forecast to show employers added jobs in December, boosting demand for the nation’s assets.
The Aussie rose for a second day against the greenback after a private survey showed Australian consumer confidence increased. New Zealand’s dollar climbed to its strongest since November as home sales rose and prices stayed near the highest since 2008. Demand for both South Pacific nations’ currencies was bolstered as the International Monetary Fund proposed boosting its lending capacity by as much as $500 billion to safeguard the global economy.
“We could get a lift in the short term for the Aussie on the back of the jobs data, which is likely to be relatively strong,” said Jim Vrondas, a manager at the online foreign- exchange dealer OzForex Ltd. in Sydney.
Australia’s dollar gained 0.4 percent to $1.0414 at 1:16 p.m. New York time. It touched $1.0450 yesterday, the most since Nov. 1. The currency was 0.3 percent stronger at 79.99 yen.
New Zealand’s dollar, nicknamed the kiwi, advanced 0.8 percent to 80.70 U.S. cents and reached 80.82 cents, the strongest since Nov. 1. It appreciated 0.8 percent to 61.98 yen.
The number of people employed in Australia rose by a net 10,000 last month after declining 6,300 in November, the statistics bureau will report at 7:30 p.m. New York time, according to the median estimate in a Bloomberg News survey. The jobless rate is forecast to remain unchanged at 5.3 percent.
Consumer Confidence
A sentiment index in the nation rose 2.4 percent to 97.1 this month, after falling 8.3 percent in December, according to a Westpac Banking Corp. and Melbourne Institute survey taken Jan. 9-13. The reading was boosted by a 9.5 percent gain in the sub-index tracking opinions on economic conditions over the next year, said Bill Evans, Westpac’s chief economist.
The Real Estate Institute of New Zealand Inc.’s index of house prices fell 0.1 percent to 3,301.4 in December, according to an e-mailed statement. The number of transactions rose 21 percent from a year earlier to 5,316, making it the most active December in four years, the institute said.
The Washington-based IMF wants to increase its resources after identifying a potential need for $1 trillion in coming years. The fund is studying options and will not comment further until it has consulted its members, it said in a statement.
--With assistance from Allison Bennett in New York. Editors: Greg Storey, Dennis Fitzgerald
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
