AUD/USD at 0.8935 after Strong Week

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.

“We don’t expect any more easing,” said Peter Dragicevich, a currency strategist at Commonwealth Bank of Australia in Sydney, the nation’s biggest lender by market value. “If we get a stronger number, then we do think the Aussie will get further support,” he said of the jobs data due on Feb. 13.

Bloomberg

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