The dollars of Australia and New Zealand drove to their top values in three months when held against the U.S. dollar on Monday, according to Bloomberg.
As U.S. reports set for release this week will show economic growth in the nation hosting the globe's largest economy is advancing rapidly, the Aussie and Kiwi also climbed from the brighter outlook about efforts to confront the sovereign debt crisis as euro zone finance ministers were set to convene in Brussels on Monday.
"Fundamentals like a weakening job market and a lessening of inflationary pressures don't seem to be impacting so far on the currency," trader David Scutt with Arab Bank Australia told The Sydney Morning Herald, noting the Aussie also gained because not many options provide high yields in an environment with relatively limited risk.
On Monday, both South Pacific monetary units notched their highest values since the end of October 2011.
Though the Australian dollar was performing well on Monday, the monetary unit was pressed by news about difficult negotiations between Greece and its private creditors, The Sydney Morning Herald reports. The Aegean nation is working to stave off defaulting on its loan obligations.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.