The spread between yields on 10- year Australian government bonds and similar-dated U.S. Treasuries may decline to the narrowest since December, RBC Capital Markets said in a report, citing trading patterns.
Julia Gillard staged a political coup in June 2010 to become Australia’s prime minister and clung to power two months later, assembling a one-seat majority after the closest election since 1940. Her biggest leadership test may come next week.
Reserve Bank of Australia Governor Glenn Stevens will hold interest rates unchanged for the longest period of his tenure as a weaker Japanese economy slows exports and eases inflation expectations, money markets show.
The Australian dollar fell against most of its 16 major counterparts after minutes of the central bank’s Aug. 2 meeting showed policy makers were concerned that turmoil in financial markets may slow global economic growth.
Investors should sell Australia’s dollar against currencies from its main trading partners as commodity prices slide and the central bank delays further interest-rate increases, Westpac Banking Corp. said.