By: Barbara Zigah
The recent release of Gross Domestic Product data from Australia indicated that the country’s economic growth was better and faster at .6% than had been originally expected for the second quarter of 2009, helping to prop up the Australian Dollar versus the Japanese Yen which was forced to retreat from a 6-week high versus the AUD. As reported at 3:24 p.m. (JST) in Tokyo, the Australian Dollar traded at 77.17 Yen, an increase of .6%. The Australian Dollar also fared well versus the U.S. Dollar, trading at $0.8317, an increase of .5%, which helped to erase some of Tuesday’s losses. The economic news of increased spending among consumers and businesses is encouraging for investors, as it proves that the country’s aggressive stimulus program has been working, which may pave the way to a rate hike later this year.
Investors are now awaiting the all-important labor data from the United States which is expected to be released on Friday. In advance of that, speculative players are shoring up their long positions in the Japanese currency fearing that a negative employment report may force the dollar/yen cross below the 90 Yen benchmark. The U.S. Dollar remained relatively unchanged against the Yen, trading at 92.87 Yen.