Bloomberg News

Aussie, Kiwi Dollar Gain on Greek Vote, Before Home Loans Data

February 12, 2012

Feb. 13 (Bloomberg) -- The Australian and New Zealand dollars rose, snapping three-day losses, as the Greek government secured enough votes in parliament to pass austerity measures to qualify for an international bailout, boosting demand for riskier assets.

The so-called Aussie advanced against the yen before a report today forecast to show Australian home-loan approvals rose in December, adding to signs the domestic economy remains resilient.

“On the view that Greek legislation is passed, we can see a bit of upside for the Aussie dollar,” said Adam Carr, a senior economist in Sydney at ICAP Australia Ltd., a unit of the world’s biggest interdealer broker.

Australia’s dollar rose 0.3 percent to $1.0709 from the Feb. 10 close in New York as of 10:18 a.m. in Sydney. The Aussie appreciated 0.3 percent to 83.11 yen.

The New Zealand dollar, known as the kiwi, climbed 0.5 percent to 83.06 U.S. cents and advanced 0.5 percent to 64.46 yen.

Greek Prime Minister Lucas Papademos won approval from parliament for austerity measures to secure an international bailout after at least 151 members of the chamber voted in favor of the measure, according to a tally of votes by deputies. The roll-call voting in Athens is being televised live on state-run Vouli TV and is continuing.

In Australia, the number of loans granted to build or buy houses and apartments gained 1.8 percent in December from the previous month, the most since May, after rising 1.4 percent in November, according to median estimate of economists surveyed by Bloomberg News before the statistics bureau releases its figures today.

“The domestic economy is very strong,” said ICAP’s Carr. “This will continue to support Aussie dollar risk trades in general.

-- Editors: Jonathan Annells, Benjamin Purvis

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.


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