SYDNEY/WELLINGTON: The Australian dollar strengthened to a seven-week high on Monday as investors bought trade-exposed currencies on expectations that a less volatile Biden administration could boost world commerce.
The Aussie, a liquid proxy for risk, climbed to $0.7297, its highest level since Sept. 21. The unit had hit a 15-week low of $0.6990 just last Monday.
The New Zealand dollar too started the week on a firmer note, gaining 0.59% to $0.6811, its highest level in 19 months.
The antipodean currencies had weakened in recent weeks as their central banks signalled further monetary policy easing to rescue their economies from the coronavirus pandemic.
However, they received a fillip last week as markets begun pricing in a Biden presidency and Republican Senate - a combination that is expected to spur further monetary easing by the US Federal Reserve.
Australian bond yields were little changed, with the tree-year bond futures flat at 99.845 and futures for 10-year bonds were 3 ticks lower at 99.2200.
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