The Australian dollar was subdued against the greenback on Thursday as lower corporate spending plans led to increased bets for an interest rate cut.
The dollar was last at $US1.0462 from $US1.0474 in early trade, but was still holding close to Tuesday's two-month peak of $US1.0491.
Weighing on the currency was a fall in planned business investment in the resource-rich nation for the year ending June 2013, adding pressure for the Reserve Bank of Australia (RBA) to add stimulus to the economy.
"The RBA needs to lower rates further...to support the non resource parts of the economy as the capex pipeline moderates further," said Su-Lin Ong, senior economist at RBC.
Australian business investment rose a solid 2.8 per cent in the September quarter, topping market forecasts, but planned spending for 2012-13 was revised down.
The reading, which still points to a massive pipeline of mining investments, also led markets to widen the odds of an interest rate cut next week.
Interbank futures are now factoring in a 62 per cent chance of a quarter point cut in the cash rate to a historical low of 3.0 per cent at the central bank's monthly policy meeting on December 4. It was 54 per cent before the data.
Swap markets put a 71 per cent chance.
A monthly survey by ANZ Bank showed business confidence picked up in November with firms more optimistic about their own prospects, while inflation expectations remained muted.
In other markets, the Aussie stayed firm against the yen, at 85.90 yen, within striking distance of a Monday's near eight-month peaks peak of 86.42.