Australian Dollar Stung by RBA Comments

The Australian dollar fell 0.7 percent to $0.9377. The Aussie pulled further away from an eight-month peak of $0.9505 set on Tuesday, coming under pressure after Reserve Bank of Australia Governor Glenn Stevens warned investors they were underestimating the risk of a significant fall in the Australian dollar.

A weak reading on Australian retail sales also added to the already soft tone of the Aussie dollar, which had retreated on Wednesday on profit-taking in the wake of disappointing Australian trade data.

The Aussie’s drop below $0.9400 triggered stop-loss selling, said Jeffrey Halley, FX trader for Saxo Capital Markets in Singapore.  “Basically, Governor Stevens timed his talking down of the Australian dollar perfectly to coincide with a soft market,” Halley said.

Reuters

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