The Australian dollar kept its gain versus major counterparts following the Reserve Bank policy makers reiterated a period of firm borrowing costs was possible.
The Aussie shortly increased 0.3% of a three-month peak against the greenback after the RBA released today the minutes from its meeting last month, when the central bank held its benchmark rate at a record low. Australia’s government bonds decreased, pushing yields higher on the second day, following the Macquarie Group Ltd. pared rate-cut forecasts.
Aussie traded at 90.75 U.S. cents at 4:55 p.m. in Sydney, previously 90.87, when it escalated 0.7%. It earlier reached 91.10, the strongest since hitting 91.33 on March 7, a level not noticed since December 11. New Zealand’s dollar settled at 85.59 U.S. cents, previously 85.65.
Australia’s currency ascended 4.8% from a 3 1/2-year low of 86.60 U.S. cents touched on January 24, backed by a strengthening domestic economy. It previously dropped 18% since reaching $1.0582 on April 11.
Improving Economy
The economy grew 0.8% in the last three months of 2013 as compared to the previous period, when it gained 0.6%, based on the statistics bureau data released on March 5. “There were further signs that low interest rates were providing support to activity. The most prudent course was likely to be a period of stability in interest rates,” the RBA said in minutes of its March 4 meeting. The central bank retained its benchmark cash rate at 2.5%.
“The decline in the exchange rate seen to date would assist in achieving balanced growth in the economy, though members noted that the exchange rate remained high by historical standards,” the minutes added.
Macquarie moved back its RBA rate-cut forecast to the 3rd quarter from the second and estimated 2.25% will be the terminal rate for the easing cycle, as stated in an e-mail from the lender today.
Westpac Banking Corp. yesterday trimmed its forecast for additional Reserve Bank easing, forecasting a rate hike in the latter half of next year. The yield on Australia’s 10-year government bond climbed four basis points or 0.04 percentage point, to 4.08%.
The material has been provided by InstaForex Company – www.instaforex.com
The Australian dollar kept its gain versus major counterparts following the Reserve Bank policy makers reiterated a period of firm borrowing costs was possible.
The Aussie shortly increased 0.3% of a three-month peak against the greenback after the RBA released today the minutes from its meeting last month, when the central bank held its benchmark rate at a record low. Australia’s government bonds decreased, pushing yields higher on the second day, following the Macquarie Group Ltd. pared rate-cut forecasts.
Aussie traded at 90.75 U.S. cents at 4:55 p.m. in Sydney, previously 90.87, when it escalated 0.7%. It earlier reached 91.10, the strongest since hitting 91.33 on March 7, a level not noticed since December 11. New Zealand’s dollar settled at 85.59 U.S. cents, previously 85.65.
Australia’s currency ascended 4.8% from a 3 1/2-year low of 86.60 U.S. cents touched on January 24, backed by a strengthening domestic economy. It previously dropped 18% since reaching $1.0582 on April 11.
Improving Economy
The economy grew 0.8% in the last three months of 2013 as compared to the previous period, when it gained 0.6%, based on the statistics bureau data released on March 5. “There were further signs that low interest rates were providing support to activity. The most prudent course was likely to be a period of stability in interest rates,” the RBA said in minutes of its March 4 meeting. The central bank retained its benchmark cash rate at 2.5%.
“The decline in the exchange rate seen to date would assist in achieving balanced growth in the economy, though members noted that the exchange rate remained high by historical standards,” the minutes added.
Macquarie moved back its RBA rate-cut forecast to the 3rd quarter from the second and estimated 2.25% will be the terminal rate for the easing cycle, as stated in an e-mail from the lender today.
Westpac Banking Corp. yesterday trimmed its forecast for additional Reserve Bank easing, forecasting a rate hike in the latter half of next year. The yield on Australia’s 10-year government bond climbed four basis points or 0.04 percentage point, to 4.08%.
The material has been provided by InstaForex Company – www.instaforex.com
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