Australia’s dollar was set for a weekly decline before the Reserve Bank releases minutes of its Aug. 6 meeting next week amid speculation the central bank will give guidance on further reductions to interest rates.
The extra yield that investors can get by holding Australia’s 10-year government debt instead of U.S. Treasuries was 17 basis points from the lowest in six years. The New Zealand dollar was poised for a second weekly advance as BNP Paribas SA recommended buying the currency on expectations the nation’s central bank will turn more hawkish.
“The RBA’s been cutting rates, and the interest-rate differential has narrowed,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “We expect the Aussie to fall.”
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