Australia: Aussie Dollar Slips on Disappointing Data.

The Australian dollar weakened to around $0.656 on Wednesday, retreating gains from the previous session, as weaker-than-expected domestic data dampened investor sentiment. The Australian Bureau of Statistics showed that retail sales rose 0.2% in May, up from a revised flat reading in April, but came in below market expectations of a 0.4% increase. In addition, building permits rose less than anticipated, adding to concerns about a weakening economic outlook. The data strengthened expectations that the Reserve Bank of Australia will cut rates by 25 basis points to 3.60%, with markets increasingly pricing in further easing in the second half of the year, potentially bringing the cash rate down to 3.10% or even 2.85% - a level viewed as stimulative. Meanwhile, the Aussie found some support as the US dollar remained subdued near multi-year lows amid rising odds of Federal Reserve rate cuts and uncertainty over President Trump’s proposed spending bill.