The Australian dollar will rise to a record and exceed parity with the U.S. currency as low volatility and the widening yield advantage boosts demand for the so-called Aussie, Commonwealth Bank of Australia said today.
The Australian dollar rose against all of its major counterparts after a report showed bigger-than- estimated growth in employment, reducing pressure on the central bank to expand monetary easing steps.
Australia’s dollar remained lower after its biggest drop in more than a week versus the greenback after Cyprus’s parliament rejected a bank-deposit levy needed to secure a bailout, sapping demand for high-yielding assets.
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.
Richard Grace, chief currency strategist and head of international economics in Sydney at Commonwealth Bank of Australia, comments on the dollar and yen after Japan intervened to stem gains in its currency.