Aussie Goes to Top with Help from Supportive Fundamentals

The Australian dollar rose today on the back of the risk-on market sentiment. In fact, the Aussie has been trading as the strongest currency on the Forex market as of the time of writing, outperforming even its commodity-geared counterparts. Macroeconomic data and the economic outlook were also favorable to the Australian currency.
The Melbourne Institute Inflation Expectations increased from 3.4% in January to 3.7% in February. The indicator shows anticipated consumer inflation during the next 12 months. The proportion of respondents expecting an increase in prices edged up by 4.4 percentage points to 56.6% this month.
Released yesterday, the Westpac-Melbourne Institute Index of Consumer Sentiment rose by 1.9% in February after dropping by 4.5% in January. The report commented on the result:

Recall that the December print was a ten year high so the bounce-back in February signals that the consumer remains extraordinarily confident.

Australian Treasury secretary Steven Kennedy said today that Australia’s economy has been recovering faster than anticipated. He stated:

We’re quietly confident that the recovery is locked in.

He also made positive comments about the state of the Australian labor market:

I am very pleased and surprised to see participation back at record levels of what was pre-COVID. Employment levels for people aged over 35 are back above pre COVID levels, which is a very positive sign.

AUD/USD rose from 0.7721 to 0.7746 as of 7:55 GMT today. EUR/AUD dropped from 1.5689 to 1.5653. AUD/JPY went up from 1.0700 to 1.0718, rebounding from the daily low of 1.0680.
If you have any questions, comments, or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com