The Australian dollar slipped on Wednesday against the U.S. dollar after retail sales slowed in the South Pacific nation, halting three consecutive days of gains, Bloomberg reports.
Those losses helped augment conjecture about the South Pacific country preparing to cut interest rates before March in order to spur the economy. But the New Zealand dollar gained against all of its major counterpart currencies after building approvals for detached houses climbed to their 24-month high.
"The news suggests that growth in the fourth quarter is likely to be lackluster as the Australian economy continues to cool off in response to more temperate demand for basic commodities from China," managing director Boris Schlossberg with BK Asset Management FX strategy told The Wall Street Journal.
From October to November, retail sales fell 0.1 percent, the Australian statistics bureau stated. A different survey noted career opportunities dropped 6.9 percent in November.
Policy makers with the Reserve Bank of Australia might be pinched to act and reduce interest rates as soon as February, one market economist told The Wall Street Journal.
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