Australian dollar hits 29-year high vs US currency

NEW YORK, March 25 (Reuters) – The Australian dollar hit a
fresh 29-year peak against the U.S. currency on Friday as
traders said gains triggered a series of automatic buy orders.

The Aussie dollar rose to $1.0278 (AUD=D4: Quote, Profile, Research), above a
previous 29-year peak of $1.0257 touched on the last trading
day of 2010. Traders said a break of stop-loss orders around
$1.0260 helped accelerate gains.

The currency’s gains have come as investor risk appetite
soars, with high Australian interest rates enhancing its appeal
for global investors in a sharp reversal of sentiment seen last
week, when fears about a nuclear disaster in Japan had
depressed risk appetite and raised questions about the impact
on Australia’s economy.

Still, traders say volatility will likely increase from
here, as some market participants try to fight these gains.

Traders said gains may fizzle around $1.03, where several
barriers are lurking.
(Editing by Theodore d’Afflisio)

Australian dollar hits 29-year high vs US currency