PERTH: The Australian dollar has dipped below US73 cents as traders start to speculate that the Reserve Bank might cut the cash rate again.
At 4pm (AEDT), the currency was trading at US72.79 cents, down from US73.19 cents yesterday.
It fell below US73c late this morning, after the RBA’s biannual Financial Stability Review said lending standards have tightened and that lending growth to investors is slowing.
The statement comes after yesterday’s disappointing local employment figures which showed that the number of people with jobs fell by 5,100 in September.
“I think the rate cut fever is kicking in,” OANDA Australia and Asia Pacific senior trader Stephen Innes said.
“Both the employment report and the prospect of a November rate cuts should present considerable headwinds for the Aussie.”
