Aussie Dollar Rises to a Two month High on Prospects of Dovish Action in U.S.

“Australia’s dollar rose to a more than two-month high on prospects that further monetary easing by the U.S. central bank will debase the greenback.

Australia’s government bonds slumped and the nation’s currency touched the strongest level in eight months versus the yen as gains in global equities boosted demand for riskier assets. New Zealand’s dollar traded at a three-year high against the Japanese currency. The advance in the so-called Aussie was limited after a private report showed consumer confidence slumped the most in nine months.

“Market sentiment is pretty buoyant,” said Andrew Salter, a currency strategist in Sydney atAustralia & New Zealand Banking Group Ltd. (ANZ) “Provisions of liquidity from foreign central banks have been a key determinant of the Australian dollar’s performance.”

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