April 11th 2012, Mariko Ishikawa, Monami Yui & Masaki Kondo & Chris Fournier, Bloomberg.com
The AUD fell to a 3-month low at $1.0226, the lowest since January 7th and 82.49 against the Yen, weakest since February 7th (Ishikawa, 2012).
“Crimping risk appetite is weighing on risk-sensitive currencies like the kiwi and the Aussie,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “There’s more attention than usual on European bond auctions, given debt jitters are starting to flare up again” (Ishikawa, 2012).
The AUD fell to a 3-month low at $1.0226, the lowest since January 7th and 82.49 against the Yen, weakest since February 7th (Ishikawa, 2012). A private report showed that the AUD remained lower showed consumer-confidence fell to a 8-month low.
The Yen however nears a 7-week high against the Euro and the European debt crisis worsens, weakening demand for riskier assets (Yui & Kondo, 2012).
“The euro is so vulnerable it will drag the yen higher,” said Kurt Magnus, executive director of foreign-exchange sales in Sydney at Nomura Holdings Inc., Japan’s biggest brokerage. The yen’s strength is “the sign of risk-off mentality" (Yui & Kondo, 2012).
The CAD also falls to a 6-month low against the USD and the European crisis worsens. It depreciated 0.7% at $1.0045 per US Dollar when since mid February has been from 98.42 cents to $1.0052 (Fournier, 2012).
To read the full articles, go here:
1) Ishikawa, M 2012, Bloomberg.com
2) Yui, M & Kondo, M 2012, Bloomberg.com
3) Fournier, C 2012, Bloomberg.com
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