The reduced pace of production in China tugged down the monetary unit of Australia against many of its counterpart currencies on Tuesday, prompting speculation about the likelihood of additional intervention by the Reserve Bank of Australia, Bloomberg reports.
For a third-straight day, the Australian dollar has lost value against the U.S. dollar. Australian and New Zealand bonds dropped to their lowest levels thus far this year during the trade session on Tuesday.
"The fact that we keep seeing Chinese data print to the weaker side of expectations is keeping the market fairly comfortable pricing in further RBA easing," fixed-income strategist Michael Turner with Royal Bank of Canada told Bloomberg on Tuesday. "More broadly, you've got to suspect with expanding global central bank balance sheets that global yields are staying low, and Aussie is being sucked down toward the rest."
China is believed to be passing through a rough economic patch as data released earlier this month demonstrated the globe's second-largest economy is seeing slower growth.
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