Australian Dollar Advances to A New High

As banks in the Eurozone, as well as China and Britain have been controlling their monetary policy to manage through a fluctuating global economy, the Australian dollar advances to a two-month high and is keeping its strong against the European currency at 83.19 Euro cents.

This good news comes as investors were told of a cut in the Eurozone interest rates from 1% to 0.75%, as the debt crisis in the region escalates. The investors were hoping the government pushes for a bond-buying program to fight this crisis. China, meanwhile, also made interest rate cuts; it’s second in two months.

Traders are said to be losing confidence and the European Central Banks seemed to be “playing catch-up with the rest of the world.”

Analyst expects another Australian dollar as the country’s representatives to the sports event head to the London Olympics, which will start in a matter of three weeks.

The Australian dollar is also expected to ease in today’s trading, as the world economy awaits the payroll data from the United States.  If the job figures result in high numbers, the dollar can gain further against the Euro. But if the job figures are low, it may be seen as though investors are punishing the Australian dollar.

Recent trading or the dollar ended at $US1.0264, down from $US1.0268, but overnight the value raised up to $US1.0331, its highest in the last two months.