The Australian dollar continued a strong start to the week, buoyed by a few pieces of Chinese data. Any data that paints a positive outlook for the world’s second largest economy is good news for Australia, with China being the country’s primary export destination. Local Australian business confidence figures released early yesterday morning provided a further boost, with momentum building for the antipodean currency. The Japanese yen also carried the strength it showed on Monday into yesterday, with speculation that central bank stimulus measures are pushing the economy forward. A small decline in global stocks also provided with the yen with a boost, as traders look for safer assets and sell off high-risk stocks.
It promises to be an interesting day for the New Zealand dollar, with an interest rate decision and monetary policy statement due this evening. Speculation is pointing towards a rate hike from the current 3% level. Should we see that speculation fulfilled, expect the dollar to gain.
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