Australian dollar sinks after central bank opens door to possible rate cut

The U-turn pushed the Australian dollar 1.5 per cent lower, putting it on track for its biggest daily drop in a year

The Australian dollar nosedived on Wednesday after its central bank opened the door to a possible rate cut, in yet another indication the global slowdown is persuading policymakers to go easy on rate hikes.

World stocks, too, stalled just off two-month highs, undermined by growth worries as well as US President Donald Trump’s combative State of the Union address, in which he unveiled no new policy initiatives. European shares traded marginally in the black and equity futures signalled a flat to weaker open on Wall Street. 

Australia’s central bank is only the latest to signal policy; the Fed has all but given