Saturday 25 July 2015

Australian dollat fell to a six-year low

The Australian dollar fell to a six-year low against the massive drop in prices of all basic goods. The sale of the raw materials due to data on industrial production in China, which fell to its lowest level for more than a year. The report affected negatively on all commodities and currencies.
Slowing economic growth in China means less demand for raw materials such as iron ore, which is a major export item to Australia. The recent decrease in prices of many commodities, including oil, is also putting under pressure  on the  Australian dollar.

Analysts said the expected fall in interest rates by the Reserve Bank of Australia is no longer on the agenda, since such a move would lead to even more massive sales for the local currency.

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