Friday saw the Australian dollar dive toward parity with the world's reserve currency for the first time since the beginning of the second half of last year as concerns about Australia's economy were gaining momentum, according to Bloomberg.
The Aussie's losses were linked with the Australian central bank cutting the country's projections for inflation as well as slashing interest rates. The Aussie was heading toward its biggest weekly losses in one year against its cross-Pacific rival.
"The growth estimates aren't telling you that they necessarily think they're going to need to use that ammunition," currency strategy global co-head Ray Attrill with National Australia Bank Ltd. in Sydney told the news source on Friday. "It's a touch less dovish than the market was primed for. There doesn't seem to be a smoking gun here for a renewed sell-off in the Aussie."
This week's losses for the Australian dollar against the greenback are poised to be roughly 2.5 percent.
The economic state of Australia and its outlook are increasingly raising eyebrows in the South Pacific nation, according to The Wall Street Journal.
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