AUD/USD Falls to 6 Month Low
Since Monday morning the AUD/USD pairing has fallen from a high of 0.9366 to a low of 0.9129 on Wednesday. The fall is not just down to a strong USD, the AUD loss value due to weaker than expected Chinese imports data and a disappointing Westpac report.
Furthermore, the price of iron ore has fallen to a five year low and there is growing concern over the effect of iron ore prices on the Australian economy after Western Desert Resources called in receivers last week. If the price continues dropping it will accelerate the slowdown in the mining sector.
Of course the strength of the USD also played a major part, the USD is at a six year high against the JPY, a 14 month high against the EUR and a none month high against the GBP. It is expected that the AUD/USD will continue to fall, especially after the Westpac Banking Corporation released data showing that consumer sentiment in Australia fell by 4.6% this month after a 3.8% rise last month.