“Australia’s dollar was 0.1 percent from a three-week low as risk appetite waned after stocks fell globally yesterday amid mounting geopolitical tension over the Gaza strip and signs of economic slowdown worldwide.
The so-called Aussie held two days of losses after the International Monetary Fund said in a statement yesterday there is scope for the Reserve Bank of Australia to ease more if warranted by the economy. The RBA held its benchmark interest rate unchanged at 3.25 percent on Nov. 6. The Australian and New Zealand dollars headed for weekly gains against the yen on speculation Japanese elections next month will hand power to an opposition party that advocates more monetary stimulus.
“The pressure is still on the downside for the Aussie,” said Lee Wai Tuck, currency strategist at Forecast Pte in Singapore. “There are concerns about the global economy slowing and euro zone risks. The RBA is likely to open the door for more easing, if not in December, maybe next year in February.””
If you enjoy the content at iBankCoin, please follow us on Twitter
