The Australian dollar fell to the lowest level in a month against the US dollar and the Japanese yen as the Australian trade balance report was unexpectedly poor, spurring speculations that another interest rate cut is coming.
Australia’s trade balance posted a deficit of A$2.03 billion in August, while the expected figure was A$0.69 billion. On top of that, the July reading was revised negatively from the deficit of A$0.56 billion to the trade gap of A$1.53 billion. Yesterday, the Reserve Bank of Australia made unexpected move, slashing its interest rates. Today’s bad data made traders believe that the RBA has not done with rate cuts.
AUD/USD was down 1.0264 to 1.0223 and AUD/JPY dropped from 80.21 to 80.00 as of 11:33 GMT today.
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