The Australian dollar plummeted below 77 US cents on Thursday, following a disappointing business investment data, escalating the likelihood of additional interest rate cuts.
According to the Australian Bureau of Statistics, business investment dropped to 4.4% in the 1st quarter.
The Aussie closed at 70.39 euro cents from Wednesday’s 71.12 euro cents, and 76.94 US cents from 77.61 US cents.
The estimation of capital expenditure plans were “disappointing and below expectations” too, said Elias Haddad, Currency Strategist at Commonwealth Bank.
The currency was also pressured due to firm US dollar that rose overnight, as markets focused on Greece’s debt negotiations.
The material has been provided by InstaForex Company – www.instaforex.com