The Australian dollar was 0.4 percent from falling below parity with its U.S. counterpart for the first time in 10 months after the central bank lowered its inflation forecast following an interest-rate cut this week.
Australia’s dollar was set to complete the longest run of weekly declines against its New Zealand counterpart in 12 years as traders raise bets the bigger nation’s Reserve Bank will cut borrowing costs next week.
The dollar snapped its biggest advance against the euro in two weeks before the U.S. releases April jobs data after the previous report disappointed with employers adding the fewest positions in nine months.
The euro was 0.2 percent from a two-week low before a German report forecast to show business confidence fell in the currency bloc’s largest economy, fueling speculation the European Central Bank will cut interest rates.
New Zealand’s central bank expects to keep borrowing costs at a record low until next year and signaled it may reduce its benchmark rate if the local dollar rises more than the economy justifies. The kiwi fell.
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.