Australia’s dollar traded near the highest this month against the greenback as traders pared record bets on a further decline, after the Reserve Bank this week tempered expectations of additional easing from a record low.
The Aussie held a three-day advance before data today forecast to show imports in China, the South Pacific nation’s biggest trading partner, rose for the first time in three months. Australia’s unemployment rate probably climbed to a four-year high, another report is expected to show. New Zealand’s dollar traded near the highest this month against its U.S. counterpart.
“There’s no doubt that expectations over potential future RBA action had been a bit overdone, and the Aussie got squeezed a little higher,” said Su-Lin Ong, Sydney-based head of Australian economic and fixed-income strategy at Royal Bank of Canada. “We’re looking for a pretty modest labor-force outcome, and that may take a bit of the edge off the Aussie.”
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