Australian Dollar Advances on Payrolls Increase, Greece Bailout Optimism
The Australian dollar rose for a second day versus the dollar after the nation’s payrolls increased by the most in more than a year.
New Zealand’s dollar fluctuated against the dollar after data showed the nation’s manufacturing industry grew at a slower pace last month. The Aussie gained after German newspaper Die Welt reported that the European Central Bank is exchanging Greek bonds for new securities, easing concern that Greece will get its second bailout.
“It looks less and less likely that we’ll see a further rate cut” by the Reserve Bank of Australia, said Kara Ordway, a foreign-exchange strategist at City Index Asia Pacific in Sydney. “Going forward over the next 12 months, I’d expect the Australian dollar to remain strong. Everything is pointing in its favor.”
Australia’s dollar rose 0.7 percent to $1.0770 at 1:17 p.m. New York time. The currency surged 1.3 percent to 84.92 yen. New Zealand’s dollar was little changed at 83.27 U.S. cents. It rose 0.6 percent to 65.73 yen.
The Standard & Poor’s 500 Index jumped 1 percent and the S&P GSCI Index of 24 raw materials gained 0.6 percent after a report the ECB is swapping its 50 billion-euro ($66 billion) Greek government bond holdings for new Greek bonds. Die Welt reported citing unidentified central bank officials said the swap will be completed by Feb. 20, it said. An ECB spokesman declined to comment on the report.
Australia’s currency climbed after the nation’s statistics bureau said payrolls increased by 46,300 last month, the most since November 2010. The median estimate of economists surveyed by Bloomberg News was for a gain of 10,000 jobs. The unemployment rate slid to 5.1 percent, whereas analysts had forecast an increase to 5.3 percent.
Bank of New Zealand Ltd. and Business New Zealand said today that the Performance of Manufacturing Index fell to 50.5 last month from a revised 51.6 in December. A reading of more than 50 indicates that manufacturing is expanding.
To contact the reporter on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net. Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
Rate this Page