Australia’s dollar retreated from a one-week high versus its U.S. peer after reports today showed the nation had a bigger-than-expected trade deficit in August and building approvals climbed less than economists forecast.
The Aussie slid against most of its 16 major counterparts, reversing gains from yesterday after the Reserve Bank of Australia kept borrowing costs unchanged. New Zealand’s kiwi weakened for a second day versus the greenback before a speech today by John McDermott, assistant governor and head of economics at the nation’s central bank.
“The economy is still going to need to do more work and that’s where the RBA has to come into the equation with additional interest-rate cuts,” said Jonathan Cavenagh, a currency strategist at Westpac Banking Corp. (WBC) in Singapore. “That’s got to probably weigh on Aussie dollar sentiment.”
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