Australian dollar gains on euro weakness, kiwi waits for inflation data
TLT•The Australian dollar rose 0.5% to $0.6978, helped by euro weakness and stronger-than-expected Chinese growth. The New Zealand dollar gained 0.1% to $0.5659 as markets awaited quarterly inflation data, with swaps pricing an 87% chance of an October rate hike.
1. Australian dollar rises
The Australian dollar rose 0.5% to $0.6978 on Monday, helped by flows out of the euro after unrest in France and by better-than-expected Chinese economic data. China’s economy grew 4.5% in the third quarter. The Aussie also gained 0.5% against the euro to 0.6210 euros.
2. Kiwi awaits inflation data
The New Zealand dollar edged 0.1% higher to $0.5659 ahead of quarterly inflation data due Thursday. Kiwibank economists expect inflation to slow to 4% in the third quarter from 4.1% previously. Swaps implied an 87% probability that the Reserve Bank of New Zealand would raise rates to 3% on October 28.
