Australian Dollar Set for Record Winning Streak as Commodities Prices Rise

(Bloomberg) -- The Australian dollar headed for a
12th day of gains, the longest winning streak since it was
allowed to trade freely in 1983, as the prices of raw materials
the country exports rose.

The currency traded near an 18-year high as the Westpac
Commodity Futures Index, an export weighted average of exchange-
traded commodity futures prices, advanced 4.5 percent to an all-
time high. The local dollar has surged 17 percent over the past
12 months as demand from China pushed up prices of raw materials,
which add about 14 percent to Australia's economy.


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Yen Trades Near Record Low Against Euro as Stock Rally Fuels Risk Appetite

(Bloomberg) -- The yen traded near a record low
against the euro as a surge in global stocks encouraged investors
to borrow the currency to buy higher-yielding assets.

The Japanese yen headed for a second weekly drop as the
Nikkei 225 Stock Average rose by the most since May, following a
rally in the Dow Jones Industrial Average yesterday. The currency
also declined against the Australian dollar, a favorite for so-
called carry trades because of its 6.25 percent benchmark rate.


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Buy Calls to Bet Australia Dollar Extends Rally, Suncorp's Pontikis Says

(Bloomberg) -- Investors should buy call options to
bet the Australian dollar rallies beyond its current 18-year
high versus the U.S. dollar, according to Peter Pontikis at
Suncorp-Metway Ltd.

The central bank will lift its benchmark by year-end, after
leaving it unchanged at 6.25 percent since November, according
to Suncorp-Metway and Lehman Brothers Holdings Inc. The
Australian currency has gained 9.3 percent this year as
investors bought the country's high-yielding debt with money
borrowed at lower rates in Japan and Switzerland.


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Australia's Dollar Advances to 105.98 Yen, Strongest Since October 1991

(Bloomberg) -- The Australian dollar rose to 105.98
yen, the highest since October 1991, before trading at 105.89
yen at 7:31 a.m. in Sydney. It was at 105.84 yen late in New
York July 6.

The currency was little changed against the U.S. dollar at
85.79 cents from 85.82 cents late last week.


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Australian Dollar Gains as Record Exports Improve Economic Growth Outlook

(Bloomberg) -- The Australian dollar rose after a
government report showed exports surged to a record in May,
bolstering the outlook for economic growth.

The currency climbed as the report showed the trade deficit
unexpectedly narrowed to the lowest in nine months, helped by
higher commodity prices. The local dollar has increased 15
percent in the past year, the second-biggest gainer among the 16
most-traded currencies, amid rising demand for the raw materials
Australia ships overseas such as gold, iron ore and nickel.


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Australian Dollar May Strengthen as Yields Attract After Stock Market Gain

(Bloomberg) -- The Australian dollar may gain on
speculation rising global stocks will give investors confidence
to buy the nation's higher-yielding assets.

The local dollar is the second-biggest gainer of the past
12 months among the 16 most-traded currencies as investors have
been attracted to Australia's 6.25 percent interest rate, which
the central bank is likely to keep unchanged today. That
compares with 5.25 percent in the U.S. and 0.5 percent in Japan.
The Morgan Stanley Capital International Asia Pacific Index
rose 0.7 percent yesterday to a record.


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Australian Shares Decline, Led by BHP, Macquarie on U.S. Economic Concerns

(Bloomberg) -- Australian stocks fell for a third
day. Stocks that depend on global growth, such as BHP Billiton
Ltd. and Macquarie Bank Ltd., dropped as the Australian dollar
traded near an 18-year high, and as concern intensified that U.S.
banks will be saddled with losses on mortgage bonds.

The S&P/ASX 200 Index slid 52.90, or 0.8 percent, to 6329.70
at the close in Sydney. About 15 stocks declined for every four
that gained.


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Options Traders Bet the Australian Dollar Will Extend Rally Against Yen

(Bloomberg) -- Traders are stepping up purchases of
options to bet Australia's dollar will rally against the yen as
a strengthening Australian economy bolsters demand for the
country's assets.

The Australian dollar set a 15-year high versus the yen
last week as government data showed Australia's capital spending
climbed 9.1 percent in the first quarter, more than double the
median forecast. Australia's benchmark interest rate is at 6.25
percent, compared with 0.5 percent in Japan.


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Australian Dollar Rises to 15-Year High Against Yen on Difference in Yield

(Bloomberg) -- The Australian dollar rose to a 15-year
high against the yen as traders were attracted to the nation's
higher returns on investments.

The currency also climbed to the highest in two weeks versus
the U.S. dollar as gains in global stock markets encouraged
investors to take on more risk. Australia's interest rate is 5.75
percentage points more than the cost of borrowing in Japan.
Investors have taken advantage of such spreads to borrow at low
rates and buy higher yielding assets, in so-called carry trades.


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Australian Dollar Drops on Nation's Falling Yield Advantage, Metal Prices

(Bloomberg) -- The Australian dollar may decline,
snapping two days of gains, as the yield advantage of the nation's
government bonds over U.S. notes narrows.

The local dollar has fallen 1.9 percent from a 17-year high
reached April 19 as the yield spread between Australian and U.S.
two-year bonds shrunk to 1.41 percentage points from 1.65 points.
The currency also weakened from a one-week high on a drop in
prices of raw materials the country exports, which add about 14
percent to Australia's economic growth.


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Australian Dollar May Strengthen on Lure of Higher-Yielding Currencies

(Bloomberg) -- The Australian dollar may gain on
demand for so-called carry trades, where investors buy higher-
yielding assets with money borrowed in countries where interest
rates are lower.

The currency traded near a 15-year high against the yen as
Australia's 6.25 percent rate compares with the 0.5 percent cost
of borrowing in Japan. Australia's dollar may gain support after
China, the nation's second-largest export market, on May 18
widened the yuan's daily trading limit and raised rates in a move
aimed at sustaining its pace of economic growth.


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