The aussie continues to trade strongly, supported by risk appetite in the market

The aussie climbed a further two cents yesterday as figures revealed rising employment in Australia, and as rising risk appetite supported strong demand for high yielding currencies.

  • The Australian dollar continued to push higher as encouraging data from the labour market gave investors further cause to buy into Australian assets.
  • The recent rate hike to 3.25% has increased the yield gap between the two currencies, and the recent downturn in unemployment has simply reinforced the sentiment that Australia is at the forefront of the global economic recovery, strengthening aussie demand.
  • Additionally, gold prices pushed record highs for the third straight day yesterday, which supported demand for the commodity driven aussie dollar.
  • The pound has slipped below the 1.77 mark in trading this morning, though its rate of decline has slowed following comments from Ben Bernanke
  • The Fed Chairman spoke of the possibility of tightening the US monetary policy which has led some investors to trim their long positions in the aussie dollar.