The dollars of Australia and New Zealand gained in value during the Tuesday trading session as monetary easing policies continued in the U.S. and Japan, Bloomberg reports.
Both Pacific nations' saw bond yields buoyed by stimulus programs in the U.S. and Japan. The Australian dollar pushed to its highest value in more than 48 months against the Japanese yen after the Bank of Japan last week doubled the size of its stimulus.
Dow Jones Newswires reports policy makers with the Reserve Bank of Australia are set to convene May 7, and one key official with the financial institution said the high value of the Aussie is of note.
"I would prefer a lower currency and it does pose some problems for us," board member John Edwards with the Reserve Bank of Australia told Dow Jones Newswires during a Tuesday interview. "But I don't think they're at all, at this point, the kinds of issues that require us to make a response."
Economic data indicating the increase of home prices prompted the New Zealand dollar to climb to its top price in six weeks against the Australian dollar, Bloomberg reports.
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.