Australian Dollar Advances Before RBA Decision; Kiwi Declines
The Aussie gained even as 20 of 27 economists in a Bloomberg survey forecast a quarter-percentage point reduction in the nation’s benchmark lending rate to 3 percent. New Zealand’s dollar weakened versus the yen and was little changed versus the U.S. dollar as global stocks declined before Americans vote today in the nation’s presidential election.
“The Australian dollar was among a handful of pro-risk currencies that weathered today’s strong haven flows with aplomb,” Ravi Bharadwaj, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co., wrote yesterday to clients. “Economists still believe weak employment gains and ebbing benefits from the nation’s resource boom will force the RBA to assume a more accommodative monetary policy stance.”
Australia’s dollar rose 0.3 percent to $1.0365 yesterday in New York. The currency gained 0.1 percent to 83.22 yen. The New Zealand dollar, nicknamed the kiwi, traded at 82.52 U.S. cents after dropping 0.2 percent to that level on Nov. 2. The kiwi fell 0.2 percent to 66.26 yen.
The MSCI World Index of stocks fell as much as 0.6 percent before paring the loss to 0.2 percent.
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