“The Australian dollar held losses after the nation’s Reserve Bank cited a softer labor market for cutting interest rates at this month’s meeting.
The Reserve Bank of Australia said growth is stabilizing in China, according to minutes of the Dec. 4 meeting when it cut its overnight cash-rate target to 3 percent. Losses in the so- called Aussie were limited after the Conference Board’s gauge of leading economic indicators inAustralia rose in October. New Zealand’s dollar remained lower after the Treasury Department lowered its budget surplus forecast for 2015.
“The Aussie got sold first on expectations of additional rate cuts from the RBA,” said Takuya Kawabata, a researcher in Tokyo at Gaitame.com Research Institute Ltd. “The Aussie was then bought back as the market digested some the positive comments about Chinese growth. The RBA may wait and see for a little while before resuming rate cuts next year.”
The Australian dollar slid 0.1 percent to $1.0540 as of 4:26 p.m. in Sydney from yesterday, when it fell 0.1 percent to $1.0552. The Aussie bought 88.51 yen from 88.52 yesterday, when it touched 89.13, the highest since May 2011.
New Zealand’s dollar, known as the kiwi, lost 0.1 percent to 84.38 U.S. cents from yesterday, when it declined 0.2 percent. The currency was little changed at 70.86 yen.
The yield on Australia’s 10-year government debt rose three basis points, or 0.03 percentage point, to 3.38 percent from yesterday, when it touched 3.41 percent, the highest since Sept. 17….”
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