Prices for homes in Australia climbed more rapidly than any time in the past four years, pushing up the value of the Aussie. Business confidence in Australia is on the upward march, which also benefited the value of the Australian dollar. New U.S. Federal Reserve Chair Janet Yellen is scheduled to deliver monetary policy testimony on Capitol Hill, which pushes up demand for the dollars of Australia and New Zealand.
The Reserve Bank of Australia last week indicated it does not plan to cut borrowing costs any time soon, which also benefits the Australian dollar, according to The Australian.
"The improved business confidence data and higher-than-anticipated growth in house prices both firm the Reserve Bank's recent guidance for a period of stability in interest rates, which is broadly supportive for the Aussie dollar," market analyst David de Ferranti with FXCM told The Australian on Tuesday.
The Aussie increased roughly 0.6 percent on Tuesday against the greenback after having touched its top rate since the middle of last month against its cross-Pacific rival.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI .
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.