The Australian dollar was on track for its best quarterly performance since at least 1983, bolstered by higher stocks and commodities amid renewed optimism that the worst of the global economic downturn is over. The Aussie rose to its highest in more than two weeks on Tuesday as Asian stocks advanced, as did oil and metals, all combining to boost appetite for the commodity-linked currency.
"We expect the Aussie to rise to $0.89 by June next year as the world economy recovers," said Joseph Capurso, strategist at Commonwealth Bank. The Aussie was at $0.8136, up from $0.7989 late here on Monday and well above last week's $0.7790 low. It rose to as high as $0.8148, its highest since June 12 and has gained 17 percent in April-June quarter. Against the yen, the Aussie advanced to as high as 78.13 yen, its best since June 19, as better risk appetite encouraged demand for leveraged carry trades.