AUD Dollar FX trader
(Action Economics) - 17-Feb-12 05:56 -AUD-USDheaded towards 1.0800 after it benefited from a pick up in risk appetite and heavy demand for NZD-USD.
A bout of AUD-NZD supply weighed in early trade, but leverage account demand and CTAs were active and Japanese buyers lifted AUD-JPY from 84.70 to 85.48 highs.
A move through 85.00 barriers triggered buy stops and AUD-USD moved through 1.0770-80, though is was unable to clear away 1.0800 resistance, which protected another batch of buy stops.
The Australian Treasury said the country was much too gloomy over the ongoing European debt crisis, and gave an upbeat assessment of the economic outlook.
Head of the Treasury Department, Martin Parkinson, said low levels of confidence did not reflect Australia's strong opportunities due to economic shifts in China and India.NZD-USDheaded higher after the RBNZ Governor Bollard said NZ growth numbers are currently understated due to conservative statistical interpretations and the particular nature of the economy, and could be 10% higher if Australian conventions are applied.
Bollard said it is almost certain that consistent measurement conventions used in NZ and Australia would narrow the reported income gap with Australia and aded that reducing measurement differences is important for several reasons, including the fact that households may not make optimal decisions regarding employment, training, migration, saving and investment if they believe that GDP per capita is significantly lower than it actually is, and that they might be better off elsewhere.
Bollard said that measuring GDP properly is a key concern for credit rating agencies and financial markets need accurate measures of NZ's ability to borrow and repay debt.
NZD-USD traded from 0.8320 in early trade to 0.8382 highs, while AUD-NZD dropped to 1.2848 lows and NZD-JPY jumped to 66.30 from 65.70 in early Asia.
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