Though the Reserve Bank of Australia pulled down interest rates by 0.25 points on Tuesday, the likelihood that the body will cut rates again is growing. The RBA may cut rates to confront the reduced pace of global growth and development.
"The Reserve Bank will cut again, probably next month," strategist Joseph Capurso with Commonwealth Bank of Australia in Sydney told the news source. "I don't think the RBA will cut as much as the market is expecting, but those expectations have been one thing that have pushed the Aussie down."
The Aussie and the Kiwi were not in high demand on Wednesday, which Bloomberg attributes to economic data showing China's economic slowdown continued as demonstrated by data about the country's non-manufacturing industries. The Australian dollar was diving toward its lowest level against the New Zealand dollar in 12 months.
Australia cutting interest rates to 3.25 percent from 3.5 percent on Tuesday marks the third rate cut since May, according to MarketWatch.
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