AUD/USD Drops to Near 0.8980 on China Concerns

The Australian dollar slid to a six-month low on Monday as worries about slower Chinese growth hit a nerve, but other major currencies held their ground ahead of this week’s Federal Reserve policy meeting.

Investors took aim at the Aussie, usually used as a liquid proxy for China plays, after data on Saturday showed factory output in Asia’s economic powerhouse grew at the weakest pace in nearly six years in August. Growth in other key sectors also cooled.

The Aussie briefly dipped below 90 U.S. cents for the first time since March 20, before edging back up to $0.9010. It has tumbled four cents in the past week.  Traders said the speed and depth of its recent decline and the proximity to major support levels seen just under 90 cents may have saved it from a more pronounced reaction to the Chinese data.

Reuters

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