Sunday, April 29, 2007

Australia Dollar May Gain as Lending Data May Boost Rate Rise Expectations

(Bloomberg) -- The Australian dollar may gain on speculation data from the central bank will show lending to Australian consumers and businesses strengthened, boosting bets for higher interest rates.

The Reserve Bank of Australia has raised borrowing costs three times the past 12 months, helping the currency advance 9.2 percent. Strong private sector credit figures may prompt traders to increase odds the central bank will raise rates again, after they cut the chance of a tightening following lower than expected inflation figures last week.


Read more at Bloomberg Currencies News

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