THE Australian dollar was lower late yesterday after China reported slower growth in the third quarter and investors continued to lower their expectations for a quick resolution of eurozone sovereign debt troubles.
China's GDP numbers dominated financial news, along with German Finance Minister Wolfgang Schauble's comments that eurozone leaders "will not have a definitive solution" to Europe's debt crisis by the weekend.
ANZ Bank currency specialist Grant Turley said the eurozone leaders were trying to manage expectations. "Clearly, if there was a silver bullet to these problem, we would have already known about it," he said. There was a danger the markets were "getting ahead of themselves".
The dollar closed out Asian trading well above its day's lows, with Reserve Bank of Australia comments lending support.
In minutes of its October 4 policy meeting, the bank said inflation was less of a problem and left the door open for an interest rate cut in November. It said interest rates were appropriate at 4.75 per cent.
Some economists said the remarks meant the central bank was not ready to cut interest rates. "Domestic demand partial indicators have improved, including retail sales, building approvals and employment data, suggesting that domestic economic activity was holding up relatively well," St George Bank economist Janu Chan said.
