AUD/USD at 0.9040 After Employment Drops

Australia’s dollar retreated from the highest level this month after employers unexpectedly cut workers, backing the case for further interest rate cuts.

The Aussie’s three-day advance stalled before the Reserve Bank of Australia releases its Statement on Monetary Policy tomorrow. The central bank said this week it would adjust policy to foster economic growth and keep inflation contained, after cutting the benchmark interest rate to a record low. New Zealand’s dollar fell, halting a two-day advance.

“Aussie is trading a little bit heavy, and that’s consistent with the weak details we see in the employment report,” said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. “The RBA can cut further.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.