Currency Trading Commentary: February 20
The Aussie dollar put in a mixed performance on Friday night, losing ground against the greenback but advancing strongly against the yen.
The local unit rallied 1.2% against its Japanese counterpart to settle at 85.20 at Saturday morning’s NY close but slipped 0.3% against the US dollar to finish at 1.0717.
During today’s Asian session the Aussie and Kiwi dollars have advanced versus most of their major counterparts on speculation euro-area governments will very soon agree today on a deal to release a second bailout package for Greece, spurring appetite for higher-yielding assets.
Both currencies also strengthened after China’s central bank said the proportion of cash that lenders must set aside will fall from Feb. 24, adding to speculation the action will boost the country’s economy and demand for the South Pacific nations’ exports.
Conversely, the yen and US dollar dropped against most major peers after the announcement by the People’s Bank of China, curbing demand for refuge assets.
Turning back to Friday night’s action, the euro was stronger across the board, adding 1.4% against the yen to settle at 104.59, 0.2% against the greenback to settle at 1.3157, and 01% against the pound to settle at 0.8309.