The Australian and New Zealand dollars rallied with stocks amid demand for riskier assets.
New Zealand’s dollar rebounded from almost a one-month low against the yen after data showed business confidence improved in the first quarter, adding to signs the country’s economy remains resilient. The Aussie rose from the weakest in three months as commodities prices tumbled amid concern Europe’s debt crisis is worsening.
“The Australian and New Zealand’s dollars are being bought back after yesterday’s selloffs,” said Takuya Kawabata, a researcher at Gaitame.com Research Institute Ltd. in Tokyo, unit of Japan’s largest currency-margin company, referring to April 10. “While a positive business sentiment report alone may not drive the New Zealand dollar higher, we could see follow-through if economic data continue to improve and we start to see a tick up in consumer prices.”
Australia’s dollar rose 0.5 percent to $1.0301 at 5:00 p.m. yesterday in New York, after touching $1.0226, the lowest since Jan. 9. It climbed 0.7 percent to 83.28 yen after it touched 82.49 yen, the weakest since Feb. 7. New Zealand’s currency added 0.4 percent to 81.81 U.S. cents. The kiwi advanced 0.6 percent to 66.16 yen.
In New Zealand, a net 13 percent of 797 companies surveyed expect the economy will improve during the next six months, from zero in the fourth-quarter survey, the New Zealand Institute of Economic Research Inc. said yesterday in Wellington. The net figure subtracts the proportion of pessimists from optimists.
“The New Zealand dollar is being torn between the negatives of the waning risk appetite and building domestic momentum,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “That tug-of-war continues and you’re likely to see the kiwi chopped around between the 80.90- 82.50 range for the rest of the week.”
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