The strong performance of the Australian dollar will continue and even inched higher than the US dollar in the next few days if the global economic data due tonight sets a good pace.

National Australia Bank's currency strategist Mr. Joseph Capurso in Sydney told the International Business Times that the Aussie dollar will even breach the 98.50 against the US dollar if the right circumstances come into play.

He noted that there is an important central bankers meeting in US and Europe that would set the direction if the global financial meltdown has been reached a new milestone and where the global economic recovery is headed.

"There is a good chance to inch higher and ease the parity between the Aussie and the US dollar," Mr. Capurso said in an interview.

Australia's currency moved upwards and close at 98.30 U.S. cents as of 4:03 p.m. in Sydney. It rose to as high as 98.46 U.S. cents. The Aussie gained at NZ$1.3039 compared to the NZ$1.2987 recorded yesterday.

Bond yields rally

As a result of the Aussie dollar's momentum and the generated employment numbers, yields of government-issued bonds also increase. Analysts are, however, wary, that these new numbers will again put pressure on the central bank to tighten up the cash rate.

The yield on Australia's two-year note moved up by 16 basis points, or 0.16 percentage point, to 4.91 percent, data from Bloomberg's treasury notes indicated.

Australia's dollar became a "darling" of traders because of the interest rates that now has gone up to 4.5 percent from 3 percent in the last 12 months. The Reserve Bank of Australia has tightened its financial and monetary policy as the economy raked in more domestic growth due to the high Australian mineral and agricultural commodity exports.