Australian dollar dropped earlier today after weak economic data suggested that that the RBA may reduce its benchmark rate from the current12 years high.
- TD Securities Ltd., and Melbourne Institute in Sydney released its monthly inflation report today showing inflation decreased in July for the first time in almost a year, though still as high as 4.6.
- In another report, Australian Industry Group (AIG) said in Canberra today that the performance of manufacturing index fell and remained below 50 for the second month.
- It is when the retail sales declined 1 percent as another sign that the economic activity is slowing.
- Australian's Prime Minister Kevin Rudd said "the nation's banks have a responsibility to lower borrowing costs if the Reserve Bank of Australia cuts its benchmark interest rate", according to the Bloomberg.
- After all, falling oil (and gold) prices in recent weeks and depreciation of Euro against dollar in addition to the fear of a sharp slowdown in global economy just add more burden on this high yield currency.
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