The Australian dollar soared to new multi-month highs against the euro and the US dollar and new multi-day highs against the currencies of Japan and Canada during Monday's early trading on hope that global financial crisis is easing prompting investors to buy higher-yielding assets financed with the low-yielding currencies.
On Friday, the markets in the U.S. and Europe were closed on account of Good Friday. Today the Australian and New Zealand markets are closed on Easter Monday holiday.
Against the US dollar, the Australian currency climbed to its highest level since January 7, 2009 in today's early trading. At about 7:15 pm ET, the pair rose to 1.8204, compared to 0.7916 hit late Thursday in New York. On the upside, the Aussie may likely find resistance level near 0.727 against the buck.
The Aussie jumped to a 6-month high against the euro, rising to 1.8204. If the Australian dollar rises further, 1.765 is seen as the next likely target level. The pair closed Thursday's deals at 1.8311.
The Aussie has been in an upward channel against the euro after hitting a new multi-day low of 2.0073 on March 18. Since then, the Aussie has gained around 9%.
The Australian dollar that was worth 72.26 against the Japanese yen and 0.8807 against the Canadian dollar at Thursday's New York session close, hit new multi-day highs of 72.66 and 0.8877, respectively during Monday's early trading. The next likely target level for the Aussie-yen pair is seen at 72.9 level and Aussie-loonie pair at 0.893 level, if it ticks up further.
The yen fell today as the Japanese stock market are trading in positive territory following the announcement of the third stimulus plan by the Japanese Prime Minister Taro Aso on Friday. A surge in equities exerted downward pressure on the yen. Usually, there is an inverse relationship between yen and stocks. When there is a stock market surge, yen falls and vice-versa.
On the economic front, a report released by the Bank of Japan showed that Japan's corporate goods prices index or the producer price index fell 0.2% month-over-month in March, in line with the expectations. During February, the index declined 0.5%. Producer prices have been seeing a declining trend since September 2008.
Today no major economic reports are scheduled for release from the Europe and US.
For comments and feedback: contact email@example.com