Australia’s dollar fell from near a six-month high after a government report showed retail spending unexpectedly declined, adding to the case for the Reserve Bank to lower interest rates tomorrow.
The so-called Aussie weakened against the yen for the first time in five days as economists forecast RBA Governor Glenn Stevens will cut the benchmark rate for a third meeting, damping the appeal of the nation’s assets. The New Zealand dollar declined from an almost five-month high versus the greenback on speculation recent advances have been too rapid.
“The market has got a high chance of a rate cut priced in for tomorrow and this number isn’t going to change that,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, referring to retail sales data. “If they do deliver a cut, the Aussie might fall, but the major push to the Aussie from the RBA is going to come from their statement.”
Australia’s dollar fell 0.3 percent to $1.0737 at 12:12 p.m. in Sydney from Feb. 3 in New York, when it touched $1.0794, the most since Aug. 2. The currency declined 0.4 percent to 82.16 yen. New Zealand’s dollar weakened 0.3 percent to 83.28 cents from last week and 0.5 percent to 63.73 yen.
Retail sales in Australia declined 0.1 percent in December from a month earlier, when they rose a revised 0.1 percent, the Bureau of Statistics said today. The result compares with the median forecast in a Bloomberg News survey of economists for a 0.2 percent gain.
The so-called Aussie weakened against the yen for the first time in five days as economists forecast RBA Governor Glenn Stevens will cut the benchmark rate for a third meeting, damping the appeal of the nation’s assets. The New Zealand dollar declined from an almost five-month high versus the greenback on speculation recent advances have been too rapid.
“The market has got a high chance of a rate cut priced in for tomorrow and this number isn’t going to change that,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, referring to retail sales data. “If they do deliver a cut, the Aussie might fall, but the major push to the Aussie from the RBA is going to come from their statement.”
Australia’s dollar fell 0.3 percent to $1.0737 at 12:12 p.m. in Sydney from Feb. 3 in New York, when it touched $1.0794, the most since Aug. 2. The currency declined 0.4 percent to 82.16 yen. New Zealand’s dollar weakened 0.3 percent to 83.28 cents from last week and 0.5 percent to 63.73 yen.
Retail sales in Australia declined 0.1 percent in December from a month earlier, when they rose a revised 0.1 percent, the Bureau of Statistics said today. The result compares with the median forecast in a Bloomberg News survey of economists for a 0.2 percent gain.
