The Australian currency ended a four-day losing streak against the yen as commodities increased for the first time in five days.
The Aussie rebounded from a 3.3 percent decline during the period ended June 1 against the Japanese currency after reaching its lowest level since November on June 1. Gains were limited after a survey of economists predicted the Reserve Bank of Australia will cut its benchmark rate today to 3.5 percent from 3.75 percent. The New Zealand dollar strengthened for a third day.
“The Aussie is really just riding on the coattails of the improvement in risk sentiment,” Joe Manimbo, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co., said in a telephone interview. “It’s only a modest rally that we’ve seen against the dollar, which is on caution ahead of tomorrow’s RBA meeting. It’s nothing more than a corrective bounce.”
Australia’s dollar gained 0.3 percent to 97.28 U.S. cents at 5 p.m. in New York yesterday. The currency traded 0.7 percent stronger versus the yen at 76.21 yen.
New Zealand’s dollar climbed 0.3 percent to 76.65 U.S. cents. It rose 0.7 percent to 59.26 yen.
The Standard & Poor’s GSCI Index of 24 raw materials increased 0.6 percent after European leaders agreed to discuss closer banking cooperation in the euro bloc to resolve the region’s debt crisis.
Futures traders wagered record net bets the Australian dollar will decline against the U.S. dollar as concern intensified that global growth is slowing. The number of so-called net shorts was 35,527 as of May 29, the most ever in figures from the Washington-based Commodity Futures Trading Commission that go back to 1993.