AUD/USD Drops to 0.8990 on China Data

Australia’s dollar fell to 90 U.S. cents for the first time since March and Sweden’s krona slid after elections, as strengthening prospects for Federal Reserve rate increases next year boosted the greenback’s allure.

The Aussie and the Swedish krona were the worst performers among the Group of 10 currencies today, while a gauge of the greenback versus major peers was near a 14-month high. Australia’s currency extended its drop this month to 3.5 percent after data showed the weakest growth in Chinese industrial production since the global financial crisis. The krona slid as Sweden faces the prospect of a hung parliament after elections. The pound was near the lowest in 10 months before Scotland votes on independence this week.

“China’s weak patch is extending a bit longer than expected as seen in the recent industrial production data,” said Imre Speizer, a markets strategist at Westpac Banking Corp. in Auckland. “That should weigh on the Aussie dollar, which will next target 89.95 cents.”

Bloomberg

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