The Australian dollar strengthened yesterday, climbing to one-month highs against the US dollar but holding level against a strong sterling. The Australian currency’s strength was in reaction to data out of China, Australia’s primary export destination, which showed new credit levels were at an all-time high. Last month’s central bank meeting minutes were released early this morning, which gave details of the bank’s decision to end two years’ worth of rate cuts.
The Japanese yen declined against all but two of its 16 most-traded peers. A report showed that the nation’s economy expanded less than analysts had predicted over the last quarter. This boosted speculation that the central bank will add to its current stimulus plan – a move that historically tends to weaken a nation’s currency. The Bank of Japan’s monetary policy meeting minutes, released today, will make interesting reading and could further impact the yen. The New Zealand dollar struggled as retail sales figures came in worse than forecast, denting the value of the antipodean currency. The Russian rouble also dropped off to record lows.
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