The Australian dollar dove on Thursday against the world's reserve currency, marking a second-straight day of losses after business confidence dropped during the second quarter of the year, Bloomberg reports.
Reserve Bank of Australia policy makers are poised to cut interest rates when they next convene. The Aussie also lost value after the International Monetary Fund indicated Chinese economic development is poised to fall short of projections. The Asian nation is a top partner for commerce and trade with Australia.
"The Aussie still has a long-term target of the high 80s going into the end of the year," currency strategist Kara Ordway with City Index Group Ltd. in Sydney told Bloomberg on Thursday. "With some of the data coming out of the Asian region and China in particular, certainly if domestic data continues to look weak then the RBA definitely has a case for further easing."
Australian 10-year bonds dropped 0.08 percent and losses for the Aussie climbed to roughly 0.7 percent against the U.S. dollar. The Aussie's slip against the Japanese yen was about 0.1 percent.
Business confidence slumping in Australia during the second quarter reversed the metric's gains during the first quarter, according to The Wall Street Journal.
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