The Australian dollar traded within 2 U.S. cents of a record high before a report forecast to show U.S. business activity slowed, adding to evidence the Federal Reserve may expand stimulus measures.
The Aussie is set for its biggest monthly gain since May 2009 as traders bet the Reserve Bank of Australia will increase benchmark interest rates when it meets next week. New Zealand?s dollar maintained three days of gains as Fed Bank of Atlanta President Dennis Lockhart said yesterday the debate over whether a new round of asset purchases should be undertaken will ?intensify? soon, and officials have the ?will to act.?
?The U.S. dollar is going to stay weak with the rhetoric coming out of the Fed,? said Jim Vrondas, a manager at the online foreign-exchange dealer OzForex Ltd. in Sydney. With ?the RBA resuming another round of tightening this year and into next year, the Aussie dollar will have a pretty good go at that parity level.?
Australia?s currency reached 97.06 U.S. cents, the most since July 2008, and traded at 97.05 cents as of 4:52 p.m. in Sydney from 96.76 cents in New York yesterday. It has gained 8.9 percent this month and 15 percent since June 30. The currency traded at 81.03 yen from 81.15.
