WELLINGTON/SYDNEY: The Australian dollar fell across the board on Thursday and hovered around one-month lows against the US dollar as subdued retail sales data added to the case for further rate cuts, while the New Zealand dollar edged up.
The Australian dollar slips to a low of $1.0182, its weakest since Sept 6 after Australian retail sales edged up 0.2 pct in August, against forecasts of a 0.4 pct gain.
The meagre rise encouraged investors to wager on more rate cuts with interbank futures pricing a 64 percent chance of a rate cut to 3.0 percent next month.
The Reserve Bank of Australia (RBA) eased by 25bp on Tuesday, as a slowdown in China, falling export prices and a high currency all combined to darken the economic outlook.
Aussie last at $1.0198, having shaved 1.7 pct this week. Key support seen at $1.0165, the September low.
Also weighing is pressure on the crosses. Euro leaps to A$1.2644, its highest since June 11, showing a gain of around 10 cents since a trough in August.
The Aussie skids 0.3 pct against the kiwi to NZ$1.2420 , having touched a year-low of NZ$1.2361 on Tuesday.
Aussie also depressed vs sterling and Swissy, hovering near three-month lows .
The New Zealand dollar edges up to $0.8200, helped by exporters bids, from $0.8178 early. It was dragged down to $0.8175 overnight in the downdraft of the Aussie.
The kiwi sitting on support level at the Sept. 24 and 26, double low at $0.8184, below which is the 50-day MA at $0.8140, with the topside capped at $0.8265.
Other data in Australia showed approvals to build new homes rose 6.4 pct in August, but that followed a steep 21 pct plunge the month before and did nothing to change the subdued outlook for home construction.
Australian government bond futures retreat from two-month highs, with the three-year contract down 0.04 points to 97.700, while the 10-year contract also eases 0.055 points to 97.130.
New Zealand government bonds lower, with yields up to three basis points higher in the long end.
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