The Aussie Dollar lost more ground against the U.S. Dollar during Tuesday’s trading session in London, moving closer to a 4-year trough that had been struck earlier this year. The Aussie has been under renewed pressure since the beginning of the month, largely as a result of a fall in iron ore export prices, but as well from unexpectedly disappointing economic data out of China and a strengthening greenback. Economists have some concerns about Australia’s growth given the cessation to the rally in mining investment and expect that it could see a further sell off.
As reported at 12:12 p.m. (BDT) in London, the AUD/USD was trading at $0.9029, a decline of 0.3% and moving away from yesterday’s low of $0.8984 while the EUR/AUD was higher at 1.4337. The Reserve Bank of Australia’s recently released minutes confirm that the governor’s intent is to further weaken the Australian Dollar.
Dollar Sidelined as Investors Await Fed
The U.S. Dollar, meanwhile, is seeing lackluster trading as investors await further confirmation from the Federal Reserve as to the possible timing of a long-awaited hike in benchmark interest rates. The Fed will be releasing its policy decision tomorrow, and though generally expectations are calling for the status quo, it will be the subsequent press conference which will offer clues to investors. The U.S. Dollar Index was nearly flat at 84.251 .DXY, staying close to a 14-month high struck last week.