The Australian currency, often referred as the Aussie, strengthened to a two-week high versus the yen as stocks in Asia climbed this Monday, raising attractiveness for the yield of the Australian dollar.
The Australian dollar had a brilliant performance last week supported by U.S. corporate earnings, and this week, both the Aussie and its New Zealand counterpart started bullish mainly against the yen and the greenback, as commodity prices continued on the rise, favoring the attractiveness of the South Pacific currencies. The return of risk appetite among investors made Australia’s S&P/ASX 200 Index to advance for the fifth day in a row, and since commodity exports account for more than half of Australian foreign trade, the crude oil rise together with several other commodities pushed the Aussie up to hit a two-week high versus the Japanese yen, which is losing massively since risk aversion declined.
The fact that corporate earnings and several reports in the United States came better than what most of economists predicted pushed confidence among traders to return to high-yielding assets intensively. The Australian dollar lost significantly versus the yen two weeks ago, and the current market scenario is the perfect opportunity for traders to profit as the Aussie rebounds.
AUD/JPY climbed to 76.89 as of 11:34 GMT from an opening price of 75.75. AUD/USD followed, being traded at 0.8124 from 0.8055.
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