Australian dollar rose a little, making up for its previous losses as the stock raised and prices of the raw materials increased, as market gradually turned towards more risk appetite mode. The raise can be attributed to the speculations about Federal Reserve reducing the US economy stimulus.
President of the Federal Reserve Bank of St. Louis, James Bullard, thinks that it’s the best time to drop monetary easing. According to Bullard, the US economy is progressing fast enough to exist stably without any excessive stimulus packages, though the Federal chairman, Ben Bernanke didn’t showed such optimism about the US economic recovery. According to Ben, consumer spending has not been recovered; it is still near the line it was during the crisis.
There are also concerns about the disruption of the crude oil supply from Iran. Metals like gold, silver and platinum also showed sign of advancement. The Aussies gained some profit from the rally of the commodities and from the expansion of the carry trade as many speculators were buying the yen to buy Australian dominated assets.
AUD/USD jumped from 1.0395 to 1.0465. The AUD/JPY rose from 85.85 to 86.16 following a drop to 85.17. EUR/AUD closed at lower from 1.2689 to 1.2673, although earlier it advanced till 1.2754 one of the highest rise since December 30.