AUD/USD Rallies to 0.9980 Before Nation’s Budget

Australia’s dollar rose, ending a six-day drop, ahead of the nation’s budget announcement after Treasurer Wayne Swan said his government will focus on jobs and growth.

The so-called Aussie also advanced after yesterday touching an 11-month low as a technical indicator signaled recent declines have been too quick. Gains in New Zealand’s dollar were limited after a report showed the nation’s first-quarter retail sales increased less than forecast.

“The budget is probably not going to be as contractionary as the market is thinking,” said Jim Vrondas, the Sydney-based chief currency and payment strategist at OzForex Ltd. “We may see a bit of a bounce in the Aussie, but it will probably be another opportunity to sell the currency as it rallies.”


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