Aussie Trade

The Aussie dollar traded firmer today (Wednesday) after favourable crossrates against the Japanese yen. However, Aussie trade was stagnant with little stimulus from local or offshore data. The Aussie dollar has recovered from its recent lows of just below 78 cents and low it lies around 78.41 US cents. The Aussie was up to Y92.59 from 92.06 yesterday. US Treasurys initially fell in response to U.S. November producer price index (PPI) data and a report on housing starts but recovered in the afternoon, closing unchanged. The Aussie traded stronger as a result of crossrates from a firmer Euro / Japanese Yen which rallied after comments from Bank of Japan Governor Fukui suggesting Japan’s inflation and consumption data had been particularly weak. The New Zealand dollar also rose to fresh three month highs against the Aussie from strong consumer confidence data and the kiwi third-quarter current account data.