The Australian and New Zealand dollars rose versus the greenback as gold rallied from the biggest drop in three decades, fueling appetite for risk.
The South Pacific nations’ currencies rebounded from weekly losses as monetary stimulus from the U.S. to Japan increased demand for higher-yielding assets. New Zealand’s kiwi dollar was supported after data showed net immigration almost doubled.
“The fact that we seem to have put that gold flash crash behind us is helping people’s nerves,” supporting demand for the Aussie and kiwi, said Sean Callow, a senior currency strategist in Sydney at Westpac Banking Corp. (WBC) “The ongoing money printing by major central banks is also helping.”
The so-called Aussie gained 0.3 percent to $1.0304 as of 12:45 p.m. in Sydney, after earlier dropping to $1.0266, the lowest since March 11. It fell 2.2 percent last week, the biggest drop since May. The kiwi rose 0.4 percent to 84.51 U.S. cents, rebounding from a 2 percent decline last week.
Gold for immediate delivery rose as much as 1.2 percent to $1,420.90 an ounce and was at $1,416.45. The metal’s five-day advance is the longest run since December, after a 9.1 percent plunge on April 15 that was the most since 1983.
Asian stocks gained for a second day, with the MSCI Asia Pacific Index adding 0.5 percent.
New Zealand’s permanent net migration rose 1,220 in March, according to Statistics New Zealand in Wellington. Arrivals exceeded departures by 2,542 in the year ended March 31, while net departures to Australia was the lowest since September 2010.
“Migration in New Zealand tends to be influenced by trans- Tasman movement -- kiwis going to Australia to work, and coming back,” said Imre Speizer, Callow’s Auckland-based colleague at Westpac. “Over the last few months they’ve been coming back, and that’s a positive for the kiwi dollar, and a negative for Aussie.”
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