The Australian dollar traded 0.8 percent from an almost eight-month low on prospects the Reserve Bank will flag further borrowing-cost reductions when it announces a policy decision today.
The so-called Aussie remained lower versus the yen as interest-rate swaps data show traders expect the central bank’s key rate to drop toward a record this year. Australia is also due to publish retail sales and current-account data today.
“We had a decent fall in the Aussie last month just on the basis of the RBA saying the inflation outlook afforded them the scope to ease if necessary,” said Ray Attrill, the Sydney-based global co-head of currency strategy at National Australia Bank Ltd. “We’ll be looking to see whether they repeat that today with the same level of conviction.”
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