The Australian dollar’s rally in the past month to be the developed world’s best-performing currency, driven by the Reserve Bank’s faith in the economy, will be put to the test by a survey of investment plans due out tomorrow.
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.
Treasury 10-year notes headed for the longest streak of weekly losses in 19 months before a report economists said will show consumer spending gained last month, stoking speculation the central bank will slow asset purchases.
Treasuries held a decline that took 10-year yields to an almost two week-high before data that analysts said will show the number of new unemployment benefit claimants fell and a gauge of leading indicators rose.
Australia’s bond yields climbed, extending the steepest rise this quarter among developed markets, on signs of economic growth in China and the U.S. New Zealand’s dollar gained on the outlook for milk production.