“Australia’s dollar headed for its biggest weekly gain in more than a month as signs of improvement in the global economy supported demand for riskier investments.
The so-called Aussie traded 0.4 percent from its strongest in three weeks before data today forecast to show U.S. sales of existing homes hovered near a two-year high. Figures yesterday showed gains in China’s industrial production, retail sales and fixed-asset investment. The appeal of the Australian and New Zealand currencies was also supported after Pacific Investment Management Co., manager of the world’s biggest bond fund, said it has boosted holdings in the South Pacific nations’ assets.
“Recent data have been easing pessimism over growth in the U.S. and China, supporting the Aussie,” said Kumiko Gervaise, an analyst at Gaitame.com Research Institute Ltd. in Tokyo. “There is a risk that the Australian dollar has gained too much in a short period of time.”
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