On Tuesday, the Australian dollar sagged further in Asia reacting to comments from a major bank official on the need for a weaker currency. Moreover, Aussie followed a mixed poll of business views, although data from China, top trading partner, pointed to support.
China posted that fixed asset investment for August edged up 8.1%, better than the 8.0% year-on-year profit observed. The country’s industrial production grew 6.3%, also leaving an expected 6.1% year-on-year soar behind, while retail sales tacked on 10.6%, ahead of the 10.3% rise observed.
The currency pair AUD/USD was worth 0.7547, descending 0.25%. Meanwhile, USD/JPY traded at 101.61, sinking 0.25%. Australia’s currency hasn’t dropped as much as expected, responding to dips in interest rates that have brought the cash rate to a record minimum 1.5%.
National Australia Bank informed that business confidence for August tacked on to plus-6, compared with the previous poll at plus-4, while its business poll dropped to plus-7 from the previous reading at plus-8.
