The Aussie also dropped to its four-plus year low against the New Zealand dollar. The globe's biggest bond fund manager, Pacific Investment Management Co., said the Reserve Bank of Australia is poised to cut interest rates when it meets early next month.
"The expected decline in mining investment will likely leave a significant economic hole in the short term that needs to be filled," states an excerpt of an article authored by portfolio managers Adam Bowe and Robert Mead on the website of California-based Pimco, according to Bloomberg. "We believe that lower interest rates will likely be required to support domestic demand as Australia transitions away from mining-assisted growth."
Policy makers with the RBA are scheduled to convene on Tuesday and Bloomberg-polled traders said the central bank will slash interest rates to 2.5 percent.
Another force tugging down the Aussie on Wednesday was the International Monetary Fund reducing the growth outlook of China, according to Dow Jones Newswires. The Asian nation and Australia share strong trade and commerce relations.
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