“Australia’s dollar declined for a third day against its U.S. counterpart on concern the South Pacific nation’s economy is slowing and may be in store for further interest-rate cuts by the central bank.
The so-called Aussie fell against most of its 16 major peers after Reserve Bank of Australia Governor Glenn Stevens was reported to have said there may not be a seamless “handover” from mining to other drivers of growth. New Zealand’s dollar slid after Auckland-based Fonterra Cooperative Group Ltd. (FCG), the world’s largest dairy exporter, said whole-milk prices fell for a fourth-straight auction and before data tomorrow forecast to show a moderation in the nation’s growth.
“Governor Stevens has always been worried about the output gap and what is going to fill the void when mining investment slows,” said Hans Kunnen, an economist at St. George Bank Ltd. in Sydney. “The fact that the RBA has come out and said economic growth in Australia would be slower may have dampened enthusiasm toward the Australian dollar.”
The Aussie declined 0.2 percent to $1.0515 as of 4:11 p.m. in Sydney, having fallen 0.3 percent in the previous two days. The currency slid 0.1 percent to 88.62 yen. New Zealand’s dollar, known as the kiwi, dropped 0.3 percent to 83.94 U.S. cents. It depreciated 0.2 percent to 70.74 yen.
The yield on Australia’s 10-year government debt rose as much as three basis points, or 0.03 percentage point, to 3.41 percent, the highest since Sept. 17…”
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