Australia’s dollar rallied from the lowest in more than 19 months after data showed building approvals grew more than economists estimated, reducing the case for the Reserve Bank to cut interest rates.
Interest-rate swaps data compiled by Bloomberg show traders see a 22 percent chance the Reserve Bank of Australia will lower its benchmark to 2.5 percent at its next meeting, down from 48 percent earlier. Demand for New Zealand’s kiwi dollar was limited after central bank Governor Graeme Wheeler said it is “significantly overvalued.”
“We’ve seen a really decent bounce in building approvals,” said Annette Beacher, head of Asia-Pacific research for TD Securities Inc. in Singapore. “Net data should be positive, but subsequently the Aussie dollar fell initially and is now back up.”
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