The Australian dollar drew down on Wednesday against the world's reserve currency, slipping from its top value in one week against its cross-Pacific rival after the release of weaker-than-projected economic data, Bloomberg reports.
The Aussie slumped against most of its top 16 rival monetary units after climbing on Tuesday when the central bank of Australia decided to leave borrowing costs intact. Australia's trade deficit in August was bigger than projected and approvals for buildings were lower than forecast. The nation's trade deficit in August amounted to $815 million in Australian currency after checking in at $1.38 billion during the month prior, according to the Australian statistics bureau.
"The external balance is still a negative for the Aussie, and of course the domestic side remains fragile," currencies research global head Callum Henderson with Standard Chartered Plc in Singapore told Bloomberg on Wednesday. "The big trend in the Australian dollar is still down."
The Australian dollar dropped 0.4 percent against the greenback one trading session after surging to its week highs.
Building approvals for the construction of new homes, townhouses and apartments fell 4.7 percent in August, according to The Australian. That metric exceeded the 1 percent drop forecast by economists.
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