The Australian dollar advanced on Monday as US wage growth data fell, bolstering expectations the Federal Reserve could defer increasing interest rates.
Labor Department reported the Employment Cost Index rose 0.2% in the second quarter from 0.7% in the first quarter.
The Aussie closed at 66.71 euro cents from Friday’s 66.48 euro cents, 73.21 US cents from 72.84 US cents, and 46.82 British pence from 46.73 British pence.
The pace of wage growth reached its lowest, which made investors think “it might prevent the Fed from raising rates later this year,” said Raiko Shareef, Currency Strategist at Bank of New Zealand.
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