Australia’s dollar reached a one- month low as stocks and commodity prices retreated, reducing investor appetite for riskier assets.
Australia’s government bonds rose, sending the 10-year yield to the lowest in more than four months. The Australian and New Zealand dollars held declines against the yen from yesterday after the International Monetary Fund cut its global growth forecast, citing a lagging recovery in Europe.
“The Aussie and kiwi are hit as stocks and commodity prices declined,” said Takuya Kawabata, an analyst at Gaitame.com Research Institute Ltd., a unit of Japan’s largest currency margin company. “While there’s no sense of urgency from the RBA to cut rates at the moment, a big drop in consumer prices or lackluster global growth could boost easing expectations.”
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