Wednesday saw the Australian and New Zealand dollars push higher against counterpart currencies on foreign exchange markets after key trade partner China released strong economic data, Bloomberg reports.
The Asian nation released data indicating the growth of imports, which brightens trade prospects for the South Pacific countries. But the Aussie is likely to be impacted by the U.S. Federal Reserve releasing minutes from last month's policy maker meeting on Wednesday.
"Increasing foreign demand for New Zealand government bonds and ongoing re-insurance inflows associated with the Christchurch earthquake have been a key feature behind the firm NZD," states a Wednesday report to clients authored by currency economist Peter Dragicevich with Commonwealth Bank in Australia, according to Bloomberg. "There appears to be a growing probability the New Zealand capital flows story will be given a further boost, driven by New Zealand's possible inclusion in the benchmark World Government Bond Index."
The Aussie's strength is quite notable given commodities' downward trend these days, Australia treasurer Wayne Swan said on Wednesday.
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