The Australian dollar drifted higher on Monday ahead of a central bank meeting that could prove a close call for a hike in interest rates, while the New Zealand dollar held firm. The Aussie inched up to $1.0740, from $1.0722 in New York on Friday, having hit a session high of $1.0766. It is within a striking distance of a three-week high of $1.0773.
The New Zealand dollar held steady around $0.8155, from $0.8147 in New York on Friday, after bouncing from a one week-low of $0.8065, when the US data dented greenback. Kiwi largely tracked the Aussie as New Zealand markets were closed for a holiday. The Aussie edged up to NZ$1.3157, continuing to recover from a four-month low of NZ$1.2905 plumbed last week. The New Zealand dollar was also on the backfoot, at NZ$1.7935, just off two-week lows. The Aussie also neared a 7-year peak against the Canadian dollar at C$1.0531. A break of C$1.0546 would take the pair to a level not seen since 1997.