The Australian dollar was advancing toward its highest level in four months on Monday in anticipation of a rate cut for the Reserve Bank of Australia when the body convenes on Tuesday, Bloomberg reports.
Also rising in value was the New Zealand dollar, which headed toward its top level in three months. Another factor benefiting the monetary units was President Mario Draghi of the European Central Bank indicating last week that the institution he leads is inclined to purchase regional bonds.
"The market is still seemingly hoping for fresh stimulus out of the ECB," strategist Jonathan Cavenagh with Westpac Banking Corporation in Singapore told the news source. "The Aussie's looking a little rich up above the $1.05 level, particularly given that commodity prices are just not bouncing because of concerns around the global economy."
Italian industrial production and German factory orders both being on the wane tempered the South Pacific dollars' gains.
The Wall Street Journal reports the U.S.' stronger-than-anticipated employment report from this past Friday also proved to be beneficial to the Australian dollar on Monday.
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