Australia’s dollar fell toward its lowest in almost three years versus the greenback on speculation the Reserve Bank may cut interest rates as soon as next month.
The Aussie extended a three-week drop before data this week forecast to show the job market stagnated in June. The South Pacific nation’s yield advantage over the U.S. is deteriorating as the Federal Reserve considers scaling back its quantitative easing program this year. New Zealand’s kiwi dollar rose after a report showed house prices gained last month.
“It’s inevitable that Aussie pushes lower,” said Robert Rennie, the chief currency strategist at Westpac Banking Corp. (WBC) in Sydney. “Lower rates are clearly required.”
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