Monday, July 2, 2007

Australian Dollar Falls as Retail Spending and Building Approvals Decline

(Bloomberg) -- The Australian dollar fell from an
18-year high after government reports showed retail sales and
building approvals declined in May. Bonds rose.

The currency pared gains as traders cut odds the Reserve
Bank of Australia will increase its key interest rate this year.
Economists had expected retail sales to rise and building
approvals to drop by less. Australia's dollar earlier climbed on
speculation investors may be lured to the yield advantage of the
country's government bonds.


Read more at Bloomberg Currencies News

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