News » US Economic Growth Benefits Australian Dollar

David Unaipon on Australian 50-dollar billThe Australian dollar gained against the euro and closed higher versus the greenback today as signs that the US economy continues to recover reinforced positive mood on the Forex market and increased appeal of higher-yielding currencies.

Durable goods orders rose 3.8 percent in November, following no change in October. The median forecast was 2.2 percent. New home sales increased from 310,000 in October to 315,000 in November, being in line with forecasts. Personal income and spending also increased, albeit with slower-than-expected pace.

The good news from the United State was a nice relief after the worries caused by the problems in Europe, especially considering that the USA is one of the major trading partners of Australia. The MSCI Asia Pacific (excluding Japan) Index gained as much 1.3 percent today. Most commodities, including copper and gold, also rallied.