Dollar down; RBA cuts growth forecasts

THE Australian dollar is lower after the Reserve Bank changed its growth forecasts for the economy.

The dollar began tracking lower yesterday following the release of jobs data. (AAP Image/Julian Smith)

THE Australian dollar is lower after the Reserve Bank changed its growth forecasts for the economy.

At 12pm AEDT today, the Australian dollar was trading at 94.41 US cents, down from 94.83 cents yesterday.

The currency began tracking lower yesterday after the release of jobs data showing Australia's unemployment rate was at 5.7 per cent in October with the number of full-time jobs falling sharply.

The Aussie came under further pressure when the US dollar was boosted overnight by strong US gross domestic product figures and again when the Reserve Bank of Australia changed its growth forecasts for the Australian economy on Friday.

"It's (the Australian dollar) had a very tough 24 hours, kicking off with the jobs numbers," Westpac senior currency strategist Sean Callow said.

"The Aussie also faced setbacks from a bounce in the US dollar after the US GDP came out and just when we looked as though we were headed for a recovery, we had the big setback from the RBA statement.

"It was particularly the growth downgrade. The GDP growth forecast for the year to December 2014 was three per cent but now it's 2.5 per cent."

Bond futures prices were higher.

At 12pm AEDT, the December 10-year bond futures contract was trading at 95.890 (implying a yield of 4.110 per cent), up from 95.885 (4.115 per cent) yesterday.

The December three-year bond futures contract was at 96.890 (3.110 per cent), up from 96.860 (3.140 per cent).

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