The Australian dollar was set for a weekly advance as signs of an improving global economy boosted demand for higher-yielding assets.
The so-called Aussie, along with its New Zealand counterpart, climbed versus most of its 16 major counterparts as stocks in developed nations headed for their biggest increase in two months. A report today may show exports in China, the biggest trading partner of Australia and New Zealand, rose last month, while data due tomorrow may indicate gains in industrial production. The U.S. will probably say today that employers added more jobs in February.
“The outlook for the Australian dollar remains that it’s very hard to construct a case where the currency goes down by a material amount,” said Andrew Salter, a currency strategist at Australia & New Zealand Banking Group Ltd. (ANZ) in Sydney. “Positive U.S. payrolls is positive for the Aussie dollar. We’re looking for improvement in the Chinese economy, and that’s partly behind our forecast for the currency to remain high.”
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