“The Australian dollar remained lower following a decline yesterday amid speculation a report tomorrow will show a slowdown in capital expenditure growth, damping the outlook for the economy and the currency.
The so-called Aussie dropped for a third day versus the yen as investors boosted bets theReserve Bank of Australia will cut rates at its next meeting on Dec. 4. Demand for New Zealand’s dollar was tempered after the country’s central bank Governor Graeme Wheeler said the local currency’s gains have hurt manufacturing and as Asian stocks retreated. The South Pacific currencies were supported after China’s commerce minister said he sees his nation’s trade improving in the second half of 2013.
“If non-mining capital investment doesn’t show signs of picking up in 2013, that suggests that policy needs to be easier and that would be consistent with a rate cut next month” from the RBA, said Andrew Salter, a currency strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “It might weigh on the currency in the very short-term.” ”
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