The South Pacific monetary unit's rise last week was about 2.3 percent, propelled largely by signs of growing economic strength in China. The Aussie is poised to cut into its losses of roughly 12 percent thus far this year against the greenback. As the Monday trade session continued, the Australian dollar pulled back from marking its three-week high against the dollar.
Confidence is waning that policy makers with the Reserve Bank of Australia will slash borrowing costs when it next convenes.
"The Aussie has stabilized and that adds to the difficulty facing the RBA as it weighs up policy over the next few months," senior currency strategist Sean Callow with Westpac Banking Corp. told the news source on Monday. "The new government is facing a currency that's still quite strong and therefore a headwind to export growth and also it reduces corporate tax revenues."
Early gains for the Aussie on Monday were linked with the U.S. releasing a jobs report that was weaker than forecast, according to The Australian.
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