The Australian dollar rose, erasing early losses, after Reserve Bank Governor said interest-rate increases were needed.
Australia’s dollar extended declines against the U.S. currency after central bank Governor Glenn Stevens said policy makers are focused on ensuring the nation’s economic rebound is durable.
Australian home-building approvals fell in August by the most in three months and credit growth stalled, giving central bank Governor Glenn Stevens scope to delay a resumption in interest-rate increases.
The Australian dollar’s world- beating rally in the past three months and bets it will extend those gains are fueling speculation policy makers will try to talk down the currency.
Australian bank lending rose in May for a sixth month and house prices gained, a sign the nation’s housing market is weathering higher central bank interest rates.