“The Australian dollar remained higher against most of its major peers as Asian stocks extended a global rally after the International Monetary Fund raised its economic growth outlook.
The New Zealand dollar rose for a second day versus the yen as a drop in currency-market volatility supported demand for higher-yielding assets. Gains in the so-called kiwi were limited after Auckland-based Fonterra Cooperative Group Ltd. said whole- milk powder prices fell to the lowest since August 2009, and before data forecast to show inflation stayed within the Reserve Bank of New Zealand’s target of 1 percent to 3 percent.
“It’s a pretty fair bet we’d run with the positive sentiment for now,” said Sean Callow, a senior currency strategist in Sydney at Westpac Banking Corp. “We’ve seen a pretty big move on the likes of Aussie and kiwi. I think they can test a little bit higher on the day.”
Australia’s currency traded at $1.0398 at 4:14 p.m. in Sydney from $1.0390 yesterday. It gained 0.7 percent to 84.59 yen from yesterday, when it rallied 0.9 percent to 84.
New Zealand’s currency fetched 82.15 U.S. cents from 82.10. The kiwi strengthened 0.7 percent to 66.83 yen from yesterday, when it rose 0.6 percent to 66.38.
The MSCI Asia Pacific Index (CRY) of stocks rose 1.2 percent, following a 1.6 percent rally in the MSCI World Index yesterday. The Thomson Reuters/Jefferies CRB Index of raw materials climbed 0.4 percent yesterday…”
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