Australian Dollar Falls on Retailing, Credit Data

Australia's dollar fell after a government report showed retail sales dropped the most in six years, adding to signs the economy is slowing.

The currency, known as the Aussie, traded near a six-week low and government bonds extended their advance after central bank figures showed lending to business and consumers rose at the slowest pace since 2002. The Aussie is heading for its first monthly loss since March as traders added to bets the Reserve Bank of Australia will cut interest rates from a 12-year high.

The Australian dollar dropped to 94.33 U.S. cents at 11:55 a.m. in Sydney, from 94.45 cents immediately before the report and 94.71 cents late in Asia yesterday. It earlier touched 94.12 cents, the weakest since June 19.

Retail sales dropped 1 percent from May, when they rose a revised 0.9 percent, the Bureau of Statistics said. Credit provided by banks and other financial companies rose 0.4 percent from May, the central bank said. That was less than the 0.6 percent median estimate in a separate survey.

Australian Dollar Falls on Retailing, Credit Data, Bloomberg
7/30/2008 8:38:20 PM