Monday saw the Australian dollar increase in value against most of its developed-market counterparts as speculation mounted that Japan is preparing to enhance spending as a method of driving its economy, Bloomberg reports.
The Aussie boosted in value against the dollar of New Zealand, which monitored losses of stocks from Asia. One currency strategist said both South Pacific currencies are set for short-term activity while additional action is forecast by the Reserve Bank of Australia.
The Australian and New Zealand dollars can "expect to see a bit more of near-term consolidation," currency strategistJonathan Cavenagh with Westpac Banking Corporation in Singapore. "We still have the view that the RBA is going to be cutting rates at least one more time this year, probably in the March meeting."
Australia's second-largest export market is Japan and the Pacific Rim country is planning to devote roughly $68 billion for public works projects, a Japanese publication reports. The top export market for Australia is China.
Monday gains for the Aussie were a continuation of a boost that the monetary unit derived from the U.S. economy announcing on Friday that it strengthened payrolls by 155,000 jobs, according to The Australian Times.
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