The Australian dollar slipped on Monday after data showing soft retail sales, lacklustre labour demand and tame inflation added to expectations of an interest rate cut at home this week. The Aussie initially skidded a third of a cent to one-week lows of $1.0395 after retail sales came in flat for October versus an expected rise of 0.4 percent.

The kiwi was pulled as low as $0.8170, from $0.8214, before steadying at $0.8200 after the upbeat Chinese data. Adding to the pain were a fall in local job advertisements for an eight month and a private gauge of inflation showing a tame reading. But the Aussie later recovered some ground on further signs of stabilisation in the Chinese economy.

Copyright Reuters, 2012