The Australian dollar climbed against its U.S. counterpart for a fifth straight day, the longest streak in a month, as rising commodity prices boosted demand for currencies linked to exports.
The Aussie gained against all but one its 16 most-traded peers after weak U.S. economic data fueled speculation the Federal Reserve will add monetary stimulus. Bets that China may also implement more monetary easing led to a rise in Asian stocks. The New Zealand dollar gained against its U.S. counterpart as stocks advanced and appetite for risk increased.
“It would be commodity prices,” driving the price, John Doyle, director of markets in Washington at currency-trading firm Tempus Consulting Inc., said in a telephone interview. “Longer term, where’s the top for the Aussie? It’s an 11-week high, at some point you’re going to see profit taking.”
Australia’s dollar rose 0.6 percent to $1.0426 yesterday in New York, the highest level in 11 weeks. The Aussie climbed 0.4 percent to 81.95 yen. New Zealand’s dollar, called the kiwi, appreciated 0.4 percent to 80.33 U.S. cents and advanced 0.1 percent to 63.14 yen.
Asian stocks advanced with the MSCI AC Asia Pacific Index (MXAP) gaining 1.6 percent. The Thomson Reuters/Jefferies CRB Commodity Index climbed 1.92 percent to its highest level since May 2. Gold rose 0.6 percent to $1,582.48 an ounce.
Purchases of previously owned U.S. homes slid 5.4 percent in June to a 4.37 million annual rate, an eight-month low, data from the National Association of Realtors showed yesterday in Washington.
Implied volatility on three-month options for Group-of- Seven currencies was 8.69 percent, close to the least since November 2007, according to the JPMorgan G7 Volatility Index. The average during the past five years is 12.4 percent. Three- month implied volatility for the Australian dollar 10.07, almost the least since May 1.
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