The Australian and New Zealand dollars rose for a second day as regional stocks gained and government spending worldwide boosted investor appetite for higher-yielding assets.
Australia’s currency climbed the most in almost three weeks after a government report showed December retail sales posted the biggest gain in more than eight years. The government yesterday announced a A$42 billion ($27.2 billion) spending package and the central bank cut interest rates to the lowest since 1964 to help the economy avoid a recession.
“Gains on the stock market and a weaker dollar are helping risk appetite,” said Tony Morriss, a senior markets strategist at Australia & New Zealand Banking Group Ltd. in Sydney. “Anything towards 67 cents will be difficult to sustain for the Aussie,” he said referring to the currency by its nickname.
Australia’s currency rose 2.3 percent, the most since Jan. 16, to 64.95 U.S. cents as of 4:48 p.m. in Sydney, from 63.49 cents late in Asia yesterday. The currency advanced 2.3 percent to 58.17 yen.
From Bloomberg News.
Australia’s currency climbed the most in almost three weeks after a government report showed December retail sales posted the biggest gain in more than eight years. The government yesterday announced a A$42 billion ($27.2 billion) spending package and the central bank cut interest rates to the lowest since 1964 to help the economy avoid a recession.
“Gains on the stock market and a weaker dollar are helping risk appetite,” said Tony Morriss, a senior markets strategist at Australia & New Zealand Banking Group Ltd. in Sydney. “Anything towards 67 cents will be difficult to sustain for the Aussie,” he said referring to the currency by its nickname.
Australia’s currency rose 2.3 percent, the most since Jan. 16, to 64.95 U.S. cents as of 4:48 p.m. in Sydney, from 63.49 cents late in Asia yesterday. The currency advanced 2.3 percent to 58.17 yen.
From Bloomberg News.