“The Australian dollar rose against most of its major peers after President Barack Obamaexpressed confidence that the U.S. can avoid the so-called fiscal cliff, boosting stocks and buoying demand for higher-yielding assets.
The so-called Aussie reached its strongest level in more than six months against the yen as theBank of Japan (8301) meets today and tomorrow with political pressure mounting for more monetary stimulus. New Zealand’s dollar, known as the kiwi, maintained an advance after data showed its services industry expanded at the fastest pace in almost five years.
“The Australian and New Zealand dollars are being bought as risk assets, so they tend to be correlated with stock moves,” said Hideki Shibata, a senior strategist for rates and currencies at Tokai Tokyo Research Center Co. “Amid the broader sell-off of the yen, the Aussie and kiwi are being chosen as higher-yielding currencies.” ”
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