Aussie, NZ dollar rally on US retailers' optimism
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A renewed optimism from U.S.-based consumers provided a boost to the trading of Australian and New Zealand dollars in New York at the day's closing.
The Australian and New Zealand dollars rose to one-week highs against the greenback on speculation that U.S. consumers would likely support growth in higher-yielding producers of raw materials.
The U.S. is still the top export market of Australian exports.
The Aussie and the kiwi, gained against 15 of their most-traded counterparts before a private report on U.S. retailer sales today that may show the fastest increase in four years, according to a preliminary statement from the International Council of Shopping Centres.
The two currencies weakened yesterday at the Asian trading halls as Asian stocks slid after U.S. data yesterday showed growth in service industries slowed last month.
"The Aussie and the kiwi are heading the charge again," said Samarjit Shankar, a managing director for the foreign- exchange group in Boston at BNY Mellon, the world's largest custodial bank, with more than $20 trillion in assets under administration told Bloomberg. "The dollar is on the back foot. With the price action in equities you're getting some risk back on the table."
Australia's dollar rose 1.4 percent to 86.48 U.S. cents at 3:15 p.m. in New York, from 85.27 cents yesterday. The currency gained 1.3 percent to 75.60 yen, from 74.62.
The New Zealand dollar climbed 1.4 percent to 70.35 U.S. cents. The kiwi bought 61.50 yen, 1.3 percent more than 60.74 yen a day ago