The Australian dollar hit a six-week trough on Thursday as investors feared tensions over Hong Kong could sour the Sino-U.S. trade talks, while underwhelming economic news at home pulled bond yields yet lower.
The Aussie slipped as far as $0.6764 at one point after U.S. President Donald Trump signed into law congressional legislation backing protesters in Hong Kong. That provoked a warning from China's Foreign Ministry that Beijing would take "firm counter measures" against interference.
Adding insult to injury, data showed Australian business investment dipped 0.2% in the third quarter and a sharp drop in equipment spending likely dragged on economic activity. That was a black mark for gross domestic product (GDP) figures due next week that are expected to show another quarter of only modest growth.
The poor outlook only added to speculation of further rate cuts from the Reserve Bank of Australia (RBA) and futures are now fully priced for an easing to 0.5% by April. They also imply a 54% chance of yet a further move to 0.25% by the end of next year.
Bonds extended their rally as yields on 10-year paper hit a six-week low of 1.036%, a sharp turnaround from a 1.34% top earlier this month.
Across the Tasman, the New Zealand dollar was enjoying a run of better economic news as a survey of businesses showed a marked improvement in mood this month. The kiwi dollar held firm at $0.6423.
13 Jul 2020 04:57 PM
Indian shares ended higher on Monday, led by a rally in Reliance Industries, ahead of June's inflation data which investors bet would lead to further interest rate cuts by the central bank.
13 Jul 2020 02:43 PM
The Indian rupee was little changed against the greenback, amid focus on decline in the dollar index
13 Jul 2020 11:45 AM
Indian shares climbed on Monday, as investors bet June inflation data later in the day would lead to further interest rate cuts by the country's central bank, while Reliance Industries gained for a third session.
13 Jul 2020 11:15 AM
The yuan hovered around the key 7 per dollar threshold on Monday, ahead of economic data this week
13 Jul 2020 10:45 AM
Gold prices rose on Monday, holding ground above the key $1,800/oz level, as a weaker dollar and worries over surging COVID-19 cases around the globe kept the safe-haven metal underpinned.
13 Jul 2020 10:31 AM
The Indian rupee was at 75.1275/75.1375 to the dollar against 75.2000/75.2100 in the previous session