Australia’s dollar traded near a three-week high versus the U.S. currency before the Reserve Bank releases minutes of an Oct. 1 meeting where policy makers refrained from cutting borrowing costs.
The Aussie gained for the first time in three days against the kiwi dollar after Reserve Bank of New Zealand Deputy Governor Grant Spencer said mortgage-lending restrictions introduced this month could ease upward pressure on the local currency by reducing the magnitude of interest-rate increases. Australian government bond yields climbed.
Australia’s central bank looks “increasingly less likely to cut this year,” said Michael Turner, a debt and currency strategist at Royal Bank of Canada in Sydney. “If we shift the debate to — will they cut in the first quarter of next year or are they done? — the Aussie’s going to find willing buyers.”
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