The Australian dollar fell sharply in Asia on news of weaker-than-expected third quarter economic growth, which showed the country is still heavily reliant on mining, while other industries remain subdued.
The data will deepen frustration at the central bank that record low interest rates are yet to fire up the economy, keeping the door open to a further cut in interest rates by the central bank in 2014. As a once-in-a-century mining investment boom fades, the economy is expected to transition toward other industries like housing construction, manufacturing, tourism and retail as drivers of growth.
But, despite eight cuts in interest rates by the central bank over the last two years, the handover in the economy has been painfully slow.
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