Monday, 03 September 2012 09:52
WELLINGTON/SYDNEY: The Australian dollars fell to six-week lows on Monday after a weak reading of retail sales added to worries about a slowing Chinese economy and raised the risk of more rate cuts.
Aussie slips 0.7 pct on the day to $1.0250, from $1.0290 in early local trade, having dipped as low as $1.0239, its weakest since late July after a raft of disappointing data at home.
Interbank futures edged up as the market priced in a modestly greater chance of a cut in interest rates by year-end. The Reserve Bank of Australia (RBA) holds its September policy meeting on Tuesday and is still expected to keep rates steady at 3.5 pct for a third straight month.
Weak data gives a fillip to Australian debt futures which jump to five-week highs. The three-year bond contract rises 0.08 points to 97.630, while 10-year contract adds 0.055 points to 97.05.
Australian retail sales unexpectedly fell 0.8 ...