Kiwi Gains After Moody’s Affirms AAA, Aussie Up With Commodities
New Zealand’s dollar gained against all of its major counterparts after Moody’s Investors Service reaffirmed the nation’s AAA credit rating.
Australia’s currency rose for first time in three days against the U.S. dollar as commodities and stocks advanced. Moody’s cited New Zealand’s deficit and debt trajectories in supporting its top rating. Gains were limited as three officials said loan demand from China’s biggest banks is drying up.
“Commodities are a little higher today, so you can see Aussie, kiwi higher, but really it’s just about a search for something better than the euro,” said Eric Viloria, senior currency strategist for Gain Capital Group LLC in New York.
New Zealand’s currency gained 0.5 percent to 75.34 U.S. cents as of 5 p.m. in New York. The kiwi traded at 59.98 yen, 0.6 percent stronger.
Australia’s dollar added 0.2 percent to 97.63 U.S. cents. It rose 0.3 percent to 77.71 yen.
The Standard & Poor’s 500 Index rose 0.1 percent yesterday and the S&P GSCI World Index of 24 raw materials advanced 0.4 percent.
China’s loan shortfall would be the first in seven years, according an exclusive Bloomberg News report. A decline in lending in April and May means it’s likely the banks’ total new loans for 2012 will be about 7 trillion yuan ($1.1 billion), less than the government goal of 8 trillion yuan to 8.5 trillion yuan, said one Chinese bank official who declined to be identified
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