higher-yielding currencies sharply rose
The Australian dollar steeply gained on Thursday as more-than-expected better Australian jobless data in May pared investors' expectations for key interest rate cut in Australia in recent months. According to the data published by Australian Bureau of Statistics Thursday number of working place in May is reduced by 1700 as compared to in April. In forecast Employment Change would be reduced by 30 000. Nevertheless unemployment rate rose to 5.7% against 5.5% in April. Changing sentiment on the market occurred in spite of the last announcement of the governor of the Reserve Bank of Australia that the Central Bank was ready to cut its interest rates further, if it would be needed by economic situation.
The New Zeeland dollar also demonstrates optimism after Bank of New Zeeland decided to leave its rates steady and the market estimated series of monetary-credit politics should come to end. Reserve Bank of New Zeeland keep key interest rate at record low level at 2.5% after series of rating cut. From July last year the key interest rate was reduced by 575 basis points.
The British pound climbed up to intraday high against some currencies after Bank of England's survey showed inflation expectations in May rose from February's 2.1% to 2.4%. EUR/GBP hit 6-month low at 0.8512, keeping risks to extend losses to 0.8260 and 0.8100 in the medium-term aspect, although at present sterling seems to be overbought.
