Aussie dollar under the gun

SYDNEY] The Australian dollar slipped for the fourth straight session on Tuesday to a near 1-1/2 week low on continued weakness in the price of iron ore – the country’s top export earner.

The Australian dollar edged 0.17 per cent lower to US$0.7424, a level not seen since May 19.

Chinese iron ore futures have been on a steady decline with the most-active iron ore contract on the Dalian Commodity Exchange diving 28 per cent since mid-March.

“The Aussie is under the gun more so from a general view that downside risk to the commodity space abounds,” said Stephen Innes, senior trader at Oanda.

“With this dispirited near-term view for iron ore prices… the Aussie appears poised for a significant move lower,” he added.

The Business Times via Reuters

 

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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