Australian Dollar Down on Chinese Risk Aversion

The Australian dollar was one of the most affected currencies today as speculations that Chinese lending requirements will slow down the global economic recovery impacted traders’ sentiment, declining appetite for high-yielding currencies.

The Aussie and the kiwi declined today versus most of the main 16 traded currencies, after one of its main trading partners, China, is likely to reduce property loans after the government set new restrictions for lending money in the nation’s banks, fueling speculations of an economic slowdown and consequently raising risk aversion in trading markets towards the end of this week’s session.

AUD/CAD traded at 0.9502 as of 19:02 GMT from a previous rate of 0.9525 yesterday.

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