Australian Dollar Falls on Data

The Australian dollar declined on speculation economic growth will slow, supporting the case for the central bank to cut interest rates., Bloomberg 4/7/2008 6:34:08 PM

Australia's dollar snapped three days of gains versus the U.S. dollar after a government report showed the nation's trade deficit unexpectedly widened to a record, adding to signs the economy is cooling.

Australia's dollar fell to 92.14 U.S. cents as of 4:35 p.m. in Sydney from 92.28 cents late in New York on April 4. New Zealand's dollar traded at 78.96 U.S. cents from 78.94 cents late last week in New York.

Australia's trade shortfall expanded to A$3.29 billion ($3 billion) from a revised A$2.54 billion in January, the Bureau of Statistics said in Sydney today.

The Australian currency fell as traders held bets the Reserve Bank of Australia will cut its 7.25 percent overnight cash rate target after Governor Glenn Stevens said last week ``inflation will start to abate,'' and a government report showed retail sales unexpectedly fell.

Losses in the Australian dollar were limited as a separate report from the Bureau of Statistics indicated home-building approvals rose 0.1 percent in February from January when they gained a revised 1.4 percent. The median estimate of 25 economists surveyed by Bloomberg was for no change.

Australian Dollar Falls on Data