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.
The euro fell to a six-week low versus the dollar before European Central Bank Executive Board member Joerg Asmussen speaks in the run-up to a policy meeting this week amid speculation further stimulus will be needed.
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.
Australia’s dollar touched a 4 1/2- year low versus its New Zealand peer, as the smaller nation’s central bank flagged a need to remove stimulus and drove a divergence in monetary policy prospects for the two countries.
The yen strengthened for a second day against the dollar after Japan’s machinery orders stagnated in July and amid concern a sales-tax increase will hamper economic growth, boosting demand for the currency as a haven.
The dollar fell versus 15 of its 16 most-traded counterparts on speculation the Federal Reserve will reassure investors that policy makers won’t be quick to raise interest rates at next week’s meeting.
Australia’s dollar fell from a more than two-week high before an ADP Research Institute report that may show companies in the U.S. added jobs last month, reinforcing the case for the Federal Reserve to reduce stimulus.