Jalatama - Australia’s
dollar remained higher following its biggest weekly advance in five months
before local data this week that may show home prices climbed to a record and
employment increased.
Yields
on the nation’s three-year government notes touched a one-month high last week
as the Reserve Bank of Australia raised its economic growth and inflation
forecasts, damping speculation the RBA will cut borrowing costs. Demand for the
Aussie and New Zealand dollars was supported after gains in stocks globally
boosted the allure of higher-yielding assets.
The
Aussie traded at 89.49 U.S. cents as of 11:23 a.m. in Sydney after
strengthening 2.3 percent last week, the most since the period ended Sept. 6,
to 89.59. It reached 89.99 U.S. cents on Feb. 7, the highest since Jan. 14. New
Zealand’s kiwi dollar weakened 0.1 percent to 82.85 U.S. cents.
Australia’s
three-year yields fell one basis point to 2.99 percent after rising to as high
as 3.03 percent at the end of last week, a level unseen since Jan. 10.
The
statistics bureau will probably say tomorrow that its index of home prices in
Australia rose 3 percent in the October-December period to the highest on
record dating back to 2002, according to the median estimate of economists
surveyed by Bloomberg News.
A
separate report from the bureau is forecast to show the number of people
employed rose 15,000 in January. It unexpectedly dropped 22,600 in December,
the first decrease in four months.
The
MSCI World Index of shares gained 1.2 percent on Feb. 7 as a government report
showed the U.S. jobless rate declined to 6.6 percent, the lowest since October
2008.
(Source: Bloomberg)