RTTNews - Monday in Asia, the Australian dollar rose against its key counterparts as a further gain in Asian stocks increased demand for higher-yielding currencies. The Australian currency thus climbed to a 4-week high against the European currency and a 4-day high versus the US dollar and the Japanese yen.
Asian markets have traded firm today with hopes of a global economic revival rising further following recent reports from across the globe suggesting the worst phase may already have ended. Most of the markets in the Asia-Pacific region are up sharply in positive territory on hectic buying across the board. Technology, financials and energy related stocks are among the prominent gainers across the region. Fairly heavy buying is seen in healthcare, industrials and automobile sectors as well.
With more frontline companies slated to come out with results over the next few days and some key economic reports to follow, a little bit of caution is seen at higher levels but the overall mood remains quite bullish in almost all the markets today.
The Australian benchmark index S&P/ASX 200 is up by 53.6 points at 4,4143. The broader All Ordinaries index is trading at 4,151, up 53.6 points over its previous close.
Among other markets in the Asia-Pacific region, the Nikkei was up 2.1% at 10,151.18 points and South Korea's Kospi Composite 1.6% higher. New Zealand's NZX-50 added 1.1% for its highest point since October 8, with Taiwan's main index up 1.1% and Hong Kong's Hang Seng Index 1.8% higher.
Oil prices also climbed on optimism about global growth, with U.S. light crude aiming for a ninth straight session of rises, heading to $69 a barrel.
The Australian currency edged higher to a 4-day high of 0.8214 against the US currency during early Asian deals on Monday. If the Aussie gains further, 0.843 is seen as the next target level. The aussie-dollar pair closed Friday's North American session at 0.8174.
The aussie-dollar pair that traded near an 8-week low of 0.7705 on July 13 strengthened thereafter and has gained around 6% thus far.
Against the European currency, the Australian dollar reached a 4-week high of 1.7336 during Monday's early Asian deals. The Australian currency is currently trading at 1.7361, with 1.713 seen as the next target level. The euro-aussie pair closed last week's trading at 1.7397.
The aussie has appreciated around 4% after hitting a 2-month low of 1.8109 against the euro on July 13.
Against the Japanese yen, the aussie rose to a 4-day high of 77.93 during Monday's early deals. On the upside, 78.4 is seen as the next target level for the aussie. The aussie-yen pair closed Friday's New York deals at 77.46.
The aussie-yen pair that plunged to a new multi-week low of 70.80 on July 13 has gained around 9.1% since then.
Japan's all industry activity index rose 0.7% month-on-month in May, after rising 2.6% in April, a report from the Ministry of Economy, Trade and Industry said today. Economists were looking for an increase of 0.9%. The gauge moved up for the second month in a row.
Year-on-year, the index dropped 9.9% in May, slightly worse than the 9.8% decline in the previous month.
The Australian currency showed strength against its Canadian counterpart during today's early deals. At 11:55 pm ET, the aussie-loonie pair rose to 0.8906, compared to Friday's closing value of 0.8869. The next upside target level for the pair is seen around 0.903.
Looking ahead, the German June import price index, GfK consumer confidence index for August and the Euro-zone June M3 money supply reports are expected in the upcoming European session.
The U.S. new home sales report for June has been slated for release in the North American session.
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