Australian GDP growth made Aussie the leader of growth
Continuing growth of investors' appetite in world markets, data showing economic growth in Australia as well raised the Australian dollar to a new 8-month high in the Asian session Wednesday. Data on gross domestic product showed that the Australian economy grew faster than forecasts, and that the country escaped a recession in the 1st quarter. Australia's GDP in the 1st quarter of 2009 grew by 0.4% as compared with the previous quarter and by 0.4% against the same period of last year. Australian Bureau of Statistics reported it. Economists expected that the GDP grew by 0.1% as compared with the last quarter and fell by 0.1% against the same period last year. In Asian session Aussie has renewed its record, reaching 0.8263 against the American counterpart. Against the euro the Australian dollar strengthened to the level at 1.73. The decline in service activity in the euro zone in May its slow, affirming the forecasts of economists that the worst period of recession for the euro is already behind us. Service Production Manager Index (PMI) in May rose to 44.8 against 43.8 in April. Nevertheless, euro/dollar started declining on falling stock indexes in Europe. The area of 1.4340-1380 may be a local maximum in the next aspect due to the profit fixation of big market operators.
The last few days dollar/yen holds in the relatively narrow range, trying to determine the future direction, but in general the current consolidation above the level of Y95.00 gives hopes for the resumption of growth. Positive signals from U.S. economic statistics could become a catalyst for further growth in long-term rates of return on U.S. bonds that could support the growth in demand for the dollar/yen and the development of dollar's upward move in the direction of 97.60.
