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The Australian dollar gained today versus most of the main 6 currencies as a report indicated that the gross domestic product grew much beyond expectations, raising attractiveness for the Aussie, even if the market sentiment favored low-yielding currencies today.

The Australian Bureau of Statistics published today a quarterly GDP report in which the South Pacific country grew 0.6 percent compared to 0.2 percent as most of economists expected. The GDP figures in Australia provided support for speculations to rise suggesting that interest rates may be rose in the country towards the end of this year or in the beginning of 2010, a fact which helped the Aussie to climb significantly today, as so far none of the main economic regions or countries in the world signaled that they intend to raise their interest rates for the moment, as the majority of economies is still in need for stimulus.

Eventual rate hikes in Australia are being highly considered, and today’s GDP figures coming much beyond analysts’ expectations are the main factor behind the Australian dollar bullish pattern today, as investors tend to inject money in higher-yielding currencies, and none of the 16 main currencies’ nations expect Australia indicated so far that interest rates will increase in the near future.

AUD/USD traded at 0.8308 as of 9:15 GMT from a previous rate of 0.8237 hours earlier. AUD/CAD climbed from 0.9152 yesterday to a current 0.9170.

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Several reasons in Asia and speculations in the U.S. led the yen to extend its gains versus most of the 16 main traded currencies, as pessimism news often raise demand for safer assets, being the yen one of the safest options which benefit from this phenomenon.

The yen is being traded at the highest rate in almost two months versus the euro as speculations suggest that the CIT Group Inc.’s financial situation is still deteriorating, bringing concerns back that the U.S. banking sector remains far from stabilization, attracting investors towards safety, mainly favoring the Japanese currency. Stocks also declined in Asia, mainly in Japan, indicating that expectations towards the world economic recovery have been unmet so far, as risk aversion is constantly climbing, damping demand for high-yielding assets as investors try to protect their portfolios.

Unless more solid evidences of a steady recovery start to appear in the main global economic regions, it is likely that the pattern for the yen will remain bullish, as the previous euphoria with the first positive reports after months of disastrous data start to fade. Concerns regarding the CIT Group reappeared this week after speculations that one of the most important banking conglomerates would file for bankruptcy emerged in June, rising risk aversion in foreign-exchange markets.

EUR/JPY traded at 131.82 as of 8:54 GMT from a previous rate of 133.50 in the intraday comparison. GBP/USD traded at 149.73 from 152.33.

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The Canadian currency entered its third day of consecutive losses as a new intense wave of risk aversion is creating bearish patterns in the main two loonie’s vectors, the crude oil and stocks.

After touching the highest rate in more than 10 months in June, the Canadian currency did not manage to sustain its high levels as towards the end of August and now in the beginning of September stocks declined and demand for commodities faltered, influencing negatively the performance of the Canadian dollar.

USD/CAD traded at 1.1046 as of 18:28 from a previous rate of 1.0938 in the intraday comparison.

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The yen climbed for six days in a row versus the euro today as confusion is plaguing investors worldwide, which are purchasing yen-priced assets to protect their portfolios from days of high volatility and extremely bearish markets, like those in the worse moments of the global slump being repeated currently.

The biggest loser versus the Japanese yen today was the Australian dollar, since the Reserve Bank of Australia officials suggested through an statement that interest rates will remain unchanged in the South Pacific nation, frustrating hopes that rates would be raise, a fact which if confirmed would raise attractiveness for the Aussie. The pound and the euro also lost value significantly versus the euro, as a result from a combination of rise in risk aversion and raising concerns regarding the economic future of main European nations, that weighed mainly on the pound today, since the U.K.’s recession is one of the most serious in the region.

As the global economic recovery comes slower and weaker than previously suggested by economists worldwide, market sentiment tends to fall, as the system of expectations has not been met by most of investors searching for yielding, consequently spurring demand for safe refuge currencies, which is the case of the yen.

EUR/JPY traded at 132.94 as of 13:22 GMT, after rebounding to 134.04 hours ago. GBP/JPY traded at 150.49 from 152.65.

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The pound declined today versus the most of 16 main traded currencies after a report in the country indicated that manufacturing production declined beyond economists expectations, adding pessimism concerning the recession length in the United Kingdom.

The United Kingdom has indicated through its latest economics reports that the current recession in the country can be considered more serious if compared to most of the main relevant economic regions around the world, declining appeal for the pound’s outlook, which traded today in the lowest level versus the euro in two months. Today, a manufacturing report published in Britain came below 50, indicating a contraction and going against expectations, sice most of economists were expecting a positive performance fueled by the to-be-confirmed economic revival in Europe. Following the pound’s decline, stocks in Britain also declined, indicating a flow of capital out of the British Isles.

Analysts evaluate the current fundamentals in the United Kingdom as negative factors weighing on the pound’s performance, since Bank of England’s policies are being unable to revive the nation’s economy, raising concerns that the recession will be longer and deeper in the U.K. than previous forecasts, which is certainly decreasing attractiveness for the British currency.

GBP/USD traded at 1.6214 as of 12:58 GMT from a previous rate of 1.6313 in the beginning of the day. EUR/GBP is in its highest rate in more than two months being traded at 0.8825.

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