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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