The expected fluctuation of the Australian dollar rose toward the highest in more than four months as traders weighed prospects for the Reserve Bank to scrap its easing bias while emerging markets drop.
New Zealand’s dollar climbed to its strongest level since February against the Australian dollar on speculation its central bank will raise interest rates at a faster pace than Australian policy makers.
New Zealand’s central bank said it intends to start raising borrowing costs “soon” as the economy strengthens. The currency fell as markets had priced in about a 50 percent chance of a rate increase today.
Australia’s dollar fell for a third day versus the greenback amid speculation U.S. payrolls data tomorrow will encourage the Federal Reserve to continue tapering stimulus that has boosted asset prices around the world.
Australa’s dollar rose versus most of its major peers after Chinese leaders unveiled the biggest economic reforms since the 1990s, buoying the outlook for the South Pacific nation’s exports to the world’s No. 2 economy.