A$ up against major peers on job gains

Tokyo

AUSTRALIA'S dollar headed for its strongest three-day winning streak since 2013 as surging jobs growth prompted traders to pare bets that the central bank will cut interest rates. The Aussie advanced against all of its 16 major peers, gaining most versus the US and Canadian currencies, as swaps traders reduced the odds of the Reserve Bank lowering rates next month to 62 per cent, from 73 per cent on Wednesday, according to data compiled by Bloomberg. A government report showed Australian employers added more than twice as many positions as analysts forecast in March, driving down the unemployment rate.

The data has "helped the Aussie higher, in that, on the margins, it diminishes slightly the risk that the RBA might cut in its May meeting", said Keng Goh, a foreign-exchange strategist at Royal Bank of Canada in London. "But the overwhelming consensus is still for a cut, which we are expecting too." Australia's dollar rose 1.3 per cent to 77.82 US cents at 7.43 am New York time, after reaching 77.98 cents, the highest since March 27. It has climbed 2.5 per cent since April 13, heading for the biggest advance over a three-day winning run since September 2013. The Bloomberg Dollar Spot Index declined 0.4 per cent for a third-straight drop.