The Australian dollar broke above 70 US cents on Monday for the first time since a report last week showed Australia's economic growth slowed in the first quarter.
The rate-sensitive Australian dollar had tumbled from near 71 US cents to 68.45 cents last week after news the nation's economic expansion slowed to 0.2 percent in the first quarter, from 1.3 percent in the fourth.
However, the Aussie has been back on the ascent since the Governor of Australia's central bank, Ian Macfarlane, said on Friday markets had "overreacted." The Bank forecast 3.75 percent economic growth through 2004.
The Aussie rallied 34 percent in 2003 as investors chased its large 425-basis point yield-premium to the US dollar, reaching a seven-year high of 80.05 US cents in February.
It has since declined 15 percent, partly as investors bet rates in the United States will ratchet higher, eroding the Aussie's yield-premium this year.
The Aussie dollar was trading at $0.7003/07, against $0.6914/19 late here on Friday.
The median result of the survey gave a 55 percent chance of a rate increase and a 20 percent chance of an easing over the next 12 months.
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