Aussie Dollar Extends Record High on Jobs Data

The Australian dollar continued its yearly rally to set a new record high in 2009 after a report indicated an improved number of monthly jobs added in October, suggesting that the nation’s central bank is likely to continue its current policy of rate hikes for the next meeting.

The Australian dollar together with the Japanese yen were the biggest winners this Thursday as risk appetite declined, favoring the Japanese currency safe refuge profile and a report in Australia showed an increased number of jobs added in October, helping the Aussie to touch a two weeks high versus the yen, and the highest level in 15 months versus its U.S. counterpart and the British pound. The Australian dollar has been ranking as the second best performer in 2009 among the 16 main traded currencies, thanks to the country’s economic resilience and the early decision of the Reserve Bank of Australia to start a consecutive monthly interest rates hike that is likely to be a record of 3 straight months if confirmed in December.

Analysts are highly optimistic that such employment report will be essential to provide support for the central bank to continue its interest rates rise policy, as favorable jobs data are a strong signal of stability and recovery for any economy leaving a recession period.

AUD/CAD traded at 0.9772 as of 12:46 GMT from a previous rate of 0.9731 yesterday.

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