By Candice Zachariahs Jan. 14 (Bloomberg) -- The Australian dollar climbed toward its strongest in two months and government bonds fell as a report showed employers added jobs for a fourth month, boosting prospects for an interest-rate increase in February. New Zealand’s currency traded near its highest level since Nov. 19 after a report showed approvals to build homes rose a fifth month. Australian employers added 35,200 jobs in December, more than triple the median forecast from economists, spurring an unexpected drop in the unemployment rate to 5.5 percent. “The market was definitely losing enthusiasm for a February hike and this is a long overdue reminder that the economy is quite robust in Australia,” said Annette Beacher, an economist at TD Securities Ltd. in Singapore. “The market should reassess its probabilities for a February tightening,” supporting the so-called Aussie, she said. Australia’s dollar rose 0.6 percent to 92.92 U.S. cents as of 2:22 p.m. in Sydney from 92.42 cents in New York yesterday. It touched 93.26 cents on Jan. 11, the strongest since Nov. 18. The currency gained 0.9 percent to 85.18 yen. New Zealand’s dollar fetched 74.06 U.S. cents, after reaching 74.38 cents on Jan. 11, the most since Nov. 19. It bought 67.89 yen from 67.66 yen. Both currencies also advanced as Asian stocks rose for a third day this week on optimism the global economic recovery is picking up. The Federal Reserve said yesterday in its Beige Book regional business survey that the U.S. economy improved in 10 of the Fed’s 12 districts last month. Bonds Decline Australian government bonds fell. The yield on the two-year government security rose 12 basis points, or 0.12 percentage point, to 4.55 percent, according to data compiled by Bloomberg. The yield on 10-year notes added eight basis points to 5.60 percent. The price of the 5.25 percent security due March 2019 slipped 0.55, or A$5.50 per A$1,000 face amount, to 97.51. TD Securities forecasts the so-called Aussie will end the quarter at 95 cents with the Reserve Bank of Australia taking rates to 4.5 percent by mid-year. Swaps traders increased bets the RBA will raise its target rate by 25 basis points when it meets Feb. 2 to 76 percent from 60 percent yesterday, according to a Credit Suisse AG index. “The RBA has more than enough ammunition for a further hike in February,” Patrick Bennett, a foreign-exchange strategist at Societe Generale SA in Hong Kong, wrote in a note to clients. “The Australian dollar is facing some resistance around 93 cents, but is favored higher.” Home-Building Permits Benchmark interest rates are 2.5 percent in New Zealand and 3.75 percent in Australia, compared with 0.1 percent in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations’ higher-yielding assets. New Zealand’s home-building permits increased 1.2 percent from October when they rose a revised 10.7 percent, Statistics New Zealand said in Wellington today, citing seasonally adjusted figures. Excluding apartments, approvals gained 3.1 percent to an 18-month high. New Zealand’s two-year swap rate, a fixed payment made to receive floating rates, rose to 4.58 percent from 4.54 percent.

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