Australian dollar gains on euro weakness, kiwi waits for inflation data

The Australian dollar advanced 0.5% to $0.6978 on Monday as investors shifted away from the euro amid unrest in France, Business Recorder reported. It also climbed 0.5% against the euro to 0.6210, while the New Zealand dollar rose 0.1% to $0.5659 ahead of quarterly inflation figures due Thursday.

China’s economy expanded 4.5% in the third quarter, beating expectations and potentially supporting demand for Australian exports including iron ore and copper. Markets put the chance of another Reserve Bank of Australia increase at its November 2 to November 3 meeting at 30%, while swaps showed an 87% probability of a third Reserve Bank of New Zealand hike this year, to 3%, on October 28. New Zealand’s third-quarter inflation is forecast by Kiwibank economists to ease to 4% from 4.1%.