Aussie Dollar Dips Amidst Reports on Weak Business Conditions

The Australian dollar fell to 0.4% in yesterday’s closing, as reports of recent surveys showing weakened business conditions for the domestic market in the month of June, made its way into the news.

The dollar ended at $US0.9103 overnight, despite doing well earlier in the day at $US0.9145. Apart from failing to gain over US, the Aussie dollar also fell against the Euro and the Yen.

According to financial experts, there are some growing concerns over the lack of improvement of the Aussie dollar that with these latest developments, the chance of an RBA cut may take place sooner in August, than the expected November implementation. Analysts earlier predicted that the likelihood of this happening is at 48%, but as the conditions appear to be weaker, there may be a 57% chance the cut is pushing through next month. Should this take place, the risks will be largely felt with debt futures.

The Aussie dollar has dipped to more than 10% since April of this year. The past week, however, saw a surge in its standing. But the momentum was only supported by Federal Reserves and the Reserve Bank of Australia (RBA).