The Australian dollar edged higher on Monday morning in Asia as traders inclined to riskier-assets on hopes that the Reserve Bank of Australia will increase its benchmark interest rates tomorrow for a third consecutive month.
Higher-yielding currencies also received a boost as most of Asian markets emerged from uncertainty following the United Arab Emirates' central bank offered more money to Dubai World, whose debt default request rattled the markets last week.
The Australian stock market is trading firm today with investors getting back into the buying mode, picking up stocks after Friday's setback. Though Wall Street, which was closed last Thursday on Thanksgiving Day holiday, suffered heavily on Friday, the Australian market has rebounded strongly today on hopes Dubai's financial crisis will have no big impact on local stocks.
The benchmark S&P/ASX 200 index is up 111.9 points or 2.4% at 4,684. The broader All Ordinaries index is trading at 4,701, up 103.8 points or 2.3% over its previous close.
Among other markets in the Asia-Pacific region, Japan, New Zealand and South Korea are up sharply, while Singapore is exhibiting weakness.
In economic news, a report from the Reserve Bank of Australia revealed total credit provided to the private sector by financial intermediaries was flat in October, following a 0.1% decline in September. Over the year, total credit rose by 1.1%. Housing credit was up 0.7% in October and increased by 8% over the year, seasonally adjusted.
The TD Securities-Melbourne Institute monthly inflation gauge showed that prices moved up 0.3% in November, matching a 0.3% rise in October. The gauge was flat in September and August. The index also rose 2.1% in the twelve months to November, putting it within the RBA's target band of 2-3% inflation.
New home sales in Australia fell for the second straight month following a first time buyer surge in August, the Housing Industry Association reported today. Sales of new homes were down 6% month-on-month in October, after the 4.5% decrease in the previous month.
Rebounding from last week's 8-week low, the Australian dollar advanced 3.9 percent to a 4-day high of 79.71 versus the Japanese yen around 8:30 pm ET. The aussie-yen pair then leveled off and is currently quoted at 79.6, compared to 78.45 hit late New York Friday. The next upside target for the pair is seen around 80.1 level.
Industrial production in Japan was up 0.5 percent on month in October, the Ministry of Economy, Trade and Industry said in a preliminary report today, posting an index score of 89.9. That was sharply lower than analyst expectations for a 2.5 percent increase following the 2.1 percent gain in September.
On an annual basis, output fell 15.1 percent after the 18.4 percent contraction in the previous month.
The Australian dollar also bounced back from Friday's fresh 7-week low of 1.6641 against the euro during early Asian deals today. The aussie advanced to a 4-day high of 1.6395 against the euro before holding steady around 8:00 pm ET. The euro-aussie pair, which closed last week's deals at 1.6508, is presently quoted at 1.6418. On the upside, the domestic unit is likely to find resistance near the 1.625 level.
In economic news from the euro area, the eurozone and the Italian consumer price reports for November are scheduled to be released at 5:00 am ET. Ahead of the report, the French producer prices for October are also due.
Against the New Zealand dollar, however, the Australian dollar edged lower to 1.2732 around 9:20 pm ET and this may be compared to Friday's close of 1.2773. The aussie-kiwi pair is presently quoted at 1.2745.
The Australian dollar touched a 4-day high of 0.9181 against the greenback by 10:00 pm ET, up 2.5 percent from Friday's multi-week lows of 0.8949. The aussie-buck pair that was worth 0.9069 at Friday's close is currently trading at 0.9175. If the Australian currency strengthens further, it may target the 0.925 resistance level.
In the U.S. Economic front, the results of the National Association of Purchasing Management-Chicago's business survey for November are scheduled to be released at 9:45 AM ET. The business barometer index based on the survey was at 54.2 in the previous month.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.