AUD/USD at 0.89 Before China Output Data

The Australian dollar dropped to the lowest in almost a month as geopolitical tensions over Ukraine curbed demand for higher-yielding assets and before a private report that may show Chinese manufacturing weakened.

The Aussie slid versus most of its 16 major counterparts while benchmark government bond yields fell to four-week lows before Reserve Bank officials meet tomorrow and ahead of gross domestic product data on March 5. New Zealand’s currency declined from a 1 1/2-month high reached last week.

“We’re starting the week with a risk-off tone from the events over the weekend, with the Russian and Ukrainian tensions escalating,” said Emma Lawson, a Sydney-based senior currency strategist at National Australia Bank Ltd. “It tends to be on geopolitical risk that currencies like the Aussie do tend to underperform.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.