Australia’s dollar traded near an almost three-month low against the U.S. currency before data tomorrow forecast to show business investment shrank.
The Aussie is headed for its sixth straight day of declines, the longest streak since the period to May 14. Reserve Bank of Australia Deputy Governor Philip Lowe said yesterday he expects to see further adjustment in the currency, echoing comments from Governor Glenn Stevens last week. The Aussie traded near its lowest in five years against the New Zealand dollar. Australia’s 10-year government bond yields fell for a fourth day, the longest losing stretch in three months.
“The fundamentals don’t look great, and it’s clear the RBA doesn’t want Aussie much higher,” said Stan Shamu, a Melbourne-based market strategist at IG Ltd. “The strategy that seems to be most prominent amongst traders is selling Aussie into strength. If we close below yesterday’s low, we’ll be looking at 90 U.S. cents in the short term.”