Australia Dollar Near Two-Month High Before RBA Stability Review
The Australian dollar traded 0.2 percent from its highest level in two months before the central bank issues its financial stability review amid bets policy makers won’t lower benchmark rates when they meet next week.
The so-called Aussie and New Zealand’s currency rose for a second day against the yen as gains in U.S. equities spurred demand for higher-yielding assets.
“The Aussie is pushing higher because the market believes there won’t be a rate cut at the next meeting,” said Daniel Barnes, a senior market maker for currencies at City Index Group Ltd. in Sydney. “We’re waiting for the RBA’s financial stability report for an overview of how the economy is going.”
The Australian dollar was little changed at $1.0473 as of 10:55 a.m. in Sydney after yesterday reaching as high as $1.0497, the strongest since Jan. 24. It rose 0.1 percent to 99.12 yen. New Zealand’s currency was unchanged at 83.90 U.S. cents and earlier touched 83.96, the most since Feb. 25. The kiwi rose 0.2 percent to 79.41 yen.
Traders are predicting an 11 percent chance the RBA will lower its benchmark 3 percent rate at its April 2 meeting, according to data on swaps compiled by Bloomberg.
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