The Australian dollar has slipped against the US dollar after the RBA hinted at the need for another rate cut, as soon as February 2020, in case the economic growth continues to remain under pressure over weak outlook for household incomes and employment. At the time of writing, AUD/USD is trading at around 0.686.

The Australian dollar lost around 0.2% of its value a day after the Australian government lowered its outlook for economic growth into 2020 on the back of slowdown in wage growth and anemic household spending. The government also revised its estimates for unemployment higher from 5.0% to 5.25% in more worrying signs for the economy.

The RBA’s most recent monetary policy meeting indicates rising concerns about the weak wage growth and its potential impact on inflation and domestic consumption, which continue to remain weak and hold back Australia’s GDP growth. The mid-year budget update also anticipates this fiscal year’s budget surplus to come in lower at AUD 5 billion.