Australia’s dollar has tumbled 15 percent from its high last year and strategists forecast more pain ahead. For Goldman Sachs Group Inc., it’s the perfect time to develop Sydney as a hub for trading local-currency assets.
The euro rallied to a two-month high against the dollar after European Central Bank President Mario Draghi said inflation is expected to rise gradually, damping bets policy makers will introduce further monetary stimulus.
Australia’s dollar climbed to the strongest in more than a week after data today showed the January trade surplus widened to the most in 2 1/2 years and retail sales rose three times faster than economists forecast.
Wheat imports by Indonesia may jump to more than 10 million tons a year in five years as rising incomes spur demand for noodles, cakes and cookies in Southeast Asia’s largest economy, according to Rabobank International.
Investors are the most bearish on Australian stocks since 2007 after last month’s rally pushed up valuations by the most since April and the central bank signaled a reluctance to add stimulus to the economy.
Bank of Tokyo-Mitsubishi UFJ Ltd. sold $1.85 billion of three-year bonds yesterday, as investors in Asia demand more shorter-dated debt amid speculation the Federal Reserve may raise interest rates in coming years.