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Read for 4 minutes (Reuters) – SINGAPORE (Reuters) – The New Zealand dollar climbed on Tuesday as a solid business survey pushed up expectations for a rate hike to as early as November, while the Australian dollar edged higher ahead of its own critical central bank policy meeting later in the day. A banker counts US dollars at a bank in Westminster, Colorado, in this file photo. Wednesday, November 3, 2009. Rick Wilking/REUTERS/File Photo The dollar and other major currencies were relatively unchanged as investors awaited the minutes from the Federal Reserve’s meeting in June, when the central bank startled markets by shifting to a more hawkish stance. They’re scheduled to be released on Wednesday. The euro remained roughly unchanged at $1.1860, while the yen advanced a smidgeon to 110.86 per dollar. The pound rose a smidgeon after Britain announced plans to lift COVID-19 limitations in a fortnight, and it last traded at $1.3857. In early trade, the kiwi climbed as much as 0.4 percent to a one-week high of $0.7066, momentarily breaking above its 200-day moving average, before settling at $0.7055. The Australian dollar gained 0.2 percent to $0.7541, while gains were limited ahead of the Reserve Bank of Australia’s (RBA) meeting. A business survey in New Zealand revealed a dramatic increase in confidence, a desire to raise prices, and a record high number of enterprises experiencing hiring difficulties, causing ASB Bank to move its rate hike forecast forward to just four months. In a note, ASB senior economist Jane Turner stated, “It is evident that record levels of monetary stimulus are no longer required to maintain the economy, and inflation risks are becoming too high for comfort.” “We now expect the RBNZ to begin lifting the OCR in November this year (rather than May 2022),” says the report. Swaps pricing has also adjusted to indicate a roughly 3/4 chance of a November raise, putting the Reserve Bank of New Zealand on pace with the ultra-hawkish Norges Bank, which is the only G10 bank anticipating a hike in 2021. The kiwi touched a one-month high against the Australian dollar, as the expectation of rate hikes as soon as four months contrasted with the RBA’s prior statement that it does not plan to raise rates until 2024. There’s a chance things will change on Tuesday, when the central bank announces its decision on the future of its bond-buying program and three-year yield objective. Economists predict that the three-year yield goal, which is set at 0.1 percent, will remain on the April 2024 bond, and that the RBA will take a flexible approach to bond purchases. In other markets, a strong surge in oil prices following the collapse of producer talks over output levels pushed exporters’ currencies higher, with the Norwegian crown up 0.3 percent overnight and the Canadian dollar gaining support. A U.S. services poll and a German attitude survey will be released later in the day, when U.S. markets return from their holiday break. Investors are looking for insight into the logic behind last month’s hawkish turn, in which Fed members forecast a start to rate hikes in 2023, thus the Fed minutes on Wednesday might influence the dollar’s near-term trajectory. “We still believe it’s too early to decide on any substantial details on tapering,” said Alvin Tan, Asia FX strategist at RBC Capital Markets, “but these minutes may likely offer the start of offering at least some sense of what members are thinking.” ======================================================== At 108 GMT, currency bid prices were as follows: RIC RIC RIC RIC RIC RIC YTD Pct High Bid Low Bid Last U.S. Close Pct Change Previous Alteration Session Euro/Dollar$1.1861 $1.1867 -0.05 percent -2.92 percent +1.1869 +1.1859Dollar/Yen110.8600$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861$1.1861 Euro/Yen131.50 131.64 -0.11 percent +3.61 percent +131.6500 +131.4700Dollar/Swiss131.50 131.64 -0.11 percent +3.61 percent +131.6500 +131.4700Dollar/Swiss Sterling/Dollar1.3859 1.3848 +0.09 percent +1.45 percent +1.3860 +1.3849Dollar/Canadian1.2339 0.9221 0.9231 -0.11 percent +4.23 percent +0.9223 +0.9217Sterling/Dollar1.3859 1.3848 +0.09 percent +1.45 percent +1.3860 +1.3849Dollar/Canadian1.2339 1.2337 +0.05 percent -3.07 percent +1.2346 +1.2330Aussie/Dollar0.7547 0.7525 +0.29 percent -1.90 percent +0.7548 +0.7528NZ$0.7547 0.7525 +0.29 percent -1.90 percent +0.7548 +0.7528NZ$ Dollar/Dollar 0.7056 0.7035 +0.32 percent -1.72 percent +0.7065 +0.7021All spots Dollar/Dollar 0.7056 0.7035 +0.32 percent -1.72 percent +0.7065 +0.7021 Locations in Tokyo Locations in Europe Volatilities BOJ provides information on the Tokyo foreign exchange market. Tom Westbrook contributed reporting, and Shri Navaratnam edited the piece./nRead More

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