The Australian dollar dove toward its lowest value in three years on Thursday against the world's reserve currency as prospects grew about interest rates being cut next week when the central bank of the South Pacific nation convenes a policy meeting, Bloomberg reports.
China, the lead trade and commerce partner to Australia, released economic data noting the July Purchasing Managers' Index advanced. That development curbed losses of the Australian dollar as policy makers prepare to meet on Tuesday of next week.
"The market is still in a mood to sell rallies in the Aussie, particularly with RBA rate-cut expectations still ramping up," currency strategist Mike Jones with Bank of New Zealand Ltd. in Wellington told Bloomberg on Thursday. "We don't think enough easing is priced into the curve. Given this, we suspect bounces in the currency will be short-lived."
After having endured losses as high as 0.6 percent during the Thursday trade session, the Aussie closed down 0.2 percent against the U.S. dollar.
Thus far this year, the Australian dollar is among the worst performing of major currencies, according to The Wall Street Journal.
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