The Australian dollar was soft today amid speculations that the Reserve Bank of Australia is going to perform additional interest rate cuts in the near future.
The RBA has surprised markets by a sudden interest rate cut last week, and some analysts say that it may do so again. Concerns about cooling economic growth in China can be one of the reasons for the central bank to ease its monetary policy further. Looking ahead, industrial production data will be released from China over the weekend while the RBA will release minutes of its latest policy meeting on Tuesday, potentially giving more insights into the reasons for the rate cut.
AUD/USD fell from 0.7323 to 0.7285 as of 10:42 GMT today, trading near the lowest level since March 2 when it had jumped 1.7%. AUD/JPY declined from 79.81 to 79.27, falling for the third consecutive day.
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