The Australian dollar advanced against all of its top 16 rival monetary units on Tuesday after policy makers with the central bank of the South Pacific nation left borrowing costs unchanged, Bloomberg reports.
The Aussie marked its top monthly gains since last year on Monday, prompted higher by better-than-forecast retail sales data from August. Reserve Bank of Australia Policy makers opted to leave interest rates unchanged at 2.5 percent, according to The Australian.
"We've got this view that the Australian economy is going to slow further from here because of what's happening in China and just because of a natural end of the mining boom," Asian economist Daniel Martin with Capital Economics in Singapore told Bloomberg, also stating the central bank is likely to slash borrowing costs at some juncture. "Growth will probably disappoint."
The Australian dollar climbed about 1.1 percent against the world's reserve currency on Tuesday after the retail sales data was 0.4 percent higher than that of the same period last year.
Governor Glenn Stevens with the RBA said reductions to cash rates since the end of 2011 have helped interest-sensitive spending, The Australian reports.
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