Australian Dollar Sinks with Prices for Iron Ore

The Australian dollar sank today, reaching the lowest level since May 2009 against its US counterpart. Australia’s economy relies strongly on export of raw materials, linking the performance of the Aussie to movement of commodity prices.

The Australian dollar dropped today with the decline of commodities and iron ore in particular, which fell to the lowest level in at least seven months. The widening trade balance deficit was also detrimental to the currency. The Aussie was the weakest performer on the Forex market during the current trading session as well as over the whole week.

AUD/USD dropped from 0.7597 to 0.7560 as of 13:03 GMT today, reaching the low of 0.7532 intraday. AUD/JPY fell from 90.95 to 90.57, and its daily low was at 90.18.

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