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.”
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