The Australian dollar advanced today as the good news from Europe and the positive macroeconomic data from the United States helped to brighten mood of traders, who felt tired from the constant stream of bad news.
The fundamental indicators showed that the US economy continues to recover and that was good for the Australian dollar. The news from Europe was good as the Spanish bond auction was much better than anticipated and that wasn’t bad either. It’s unlikely that the Forex market has seen an end to the bad news, but at least the flow of negative event paused, even if for a short while.
The news was well received by markets and optimism reemerged, even though it was cautious. The MSCI Asia Pacific Index of shares rose 0.4 percent, while the Standard & Poorâs 500 Index posted the first session of gains this week yesterday.
Next week, the Reserve Bank of Australia will release the minutes of its last monetary policy meeting. The minutes may provide more insights for the reasons that prompted the central bank to cut its interest rates and suggestions for future decisions.
AUD/USD rose from 0.9920 to 0.9969 and AUD/JPY went higher from 77.22 to 77.65 as of 6:11 GMT today. EUR/AUD slid from 1.3115 to 1.3064.
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