THE TAKEAWAY: Australian business operations reported losses > RBA more likely to introduce another round of rate cuts > Aussie traded lower
The Australian dollar traded lower versus the greenback as Australian business’ reported a 2.9 percent operating loss in the third quarter while inventories increased by 1.1 percent suggesting the overall economic climate appears to have slowed.
Forex traders sold the Aussie as this round of negative data further supports market expectations that the Reserve Bank of Australia may cut the benchmark lending rate by 25 basis points on December 4, effectively hurting the currencies main attraction – yield.
AUD/USD, 1 Minute Chart
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