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.
04 Dec 2020 04:48 PM
India's benchmark stock index retreated to close above 45,000 points for the first time ever as the RBI upgraded its GDP target for the current fiscal year and kept interest rates steady amid high inflation.
04 Dec 2020 03:57 PM
Indian rupee stayed higher tracking uptick in regional peers
04 Dec 2020 11:51 AM
Indian equities touched record highs after the RBI kept interest rates steady due to high inflation, and retained its accommodative monetary policy stance
04 Dec 2020 11:35 AM
Yuan rose to a fresh 2 1/2-year high against a weakening dollar, despite fresh signs of tension between the US and Chinese economy.
04 Dec 2020 11:01 AM
Gold prices strengthened and are on track for their first weekly gain in a month, as growing optimism over a U.S. fiscal stimulus deal pressured the dollar and boosted Gold appeal as an inflation hedge.
04 Dec 2020 10:44 AM
Indian rupee was trading at 73.73/73.74 compared to 73.90/ 73.91 in the previous session, as the Dollar Index continued to decline in anticipation of the U.S. monthly non-farm payrolls report.