Australia’s dollar had its biggest daily gain versus the yen since November after data showed the nation’s economy expanded twice as fast as forecast.
The Aussie rose for a third day, its longest win streak against the dollar since April, as global stocks and commodities rallied. New Zealand’s dollar rallied as investors speculated Federal Reserve Chairman Ben S. Bernanke may signal further monetary stimulus for the U.S.
“If Australia has good GDP data, people think that means something about East Asia, and specifically China,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co. in New York. “People are also playing up easing expectations in the U.S.”
Australia’s dollar advanced 1.9 percent to 99.27 U.S. cents as of 5 p.m. in New York, its biggest daily gain since Dec. 20. It reached as high as 99.33 U.S. cents, the strongest since May 22. The Aussie surged 2.5 percent to 78.61 yen in the biggest gain since Nov. 30.
New Zealand’s dollar rose 1.9 percent to 77.08 U.S. cents and rallied 2.5 percent to 61.14 yen.
Australia’s economy expanded 1.3 percent in the first three months of this year, the Bureau of Statistics said yesterday. It was the fastest pace since the period ended June last year and compared with the 0.6 percent median estimate from economists in a Bloomberg News survey.
Bernanke is scheduled to testify before U.S. lawmakers in Washington today. The excess liquidity from additional asset purchases may debase the U.S. currency while boosting higher- yielding assets.
The Standard & Poor’s 500 Index (SPX) rallied 2.3 percent in its biggest daily rally this year. The MSCI World Index of stocks gained 2.2 percent and the S&P GSCI Index of 24 raw materials rose 1.3 percent.
Australia and New Zealand’s dollar are the best performers on the Bloomberg Correlation-Weighted Indexes in the past week advancing 1.4 percent. The gauge tracks 10 developed-nation currencies. The yen is the worst performer with a 1.3 percent loss.
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