The Australian dollar fell against most of its major counterparts, reaching its lowest level versus the U.S. dollar in more than seven weeks, as economic growth in the nation slowed more than forecast in the second quarter.
The Aussie fell to a six-week low against the yen as data yesterday showed euro-area retail sales shrank last month and before a report today forecast to show Australian employers added 5,000 jobs in August after an addition of 14,000 in the prior month. A separate report is expected to show the unemployment rate rose to 5.3 percent from 5.2 percent. The New Zealand dollar pared an earlier loss versus the greenback after figures showed the value of the nation’s construction rose.
The main reason for the Australian deceleration was “less impressive growth in investment, particularly in the mining sector,” Daniel Martin, Singapore-based economist at Capital Economics Ltd., wrote today in a note to clients. “Lower commodity prices have clouded the outlook for investment.”
The Australian dollar lost 0.3 percent to $1.0191 yesterday in New York after earlier touching $1.0167, the lowest since July 13. It reached 79.68 yen, the weakest since July 25, before trading down 0.4 percent to 79.91.
New Zealand’s dollar was little changed at 79.50 U.S. cents and at 62.29 yen.
The Aussie was the strongest net-sold currency yesterday, according to Bank of New York Mellon client flows. The pace of selling was double the average during the past year, Samarjit Shankar, a managing director for the foreign-exchange group wrote to clients. The euro was net-bought after seven consecutive sessions of outflows, he said.
To contact the reporter on this story: Joseph Ciolli in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Dave Liedtka at email@example.com