PERTH: The Australian dollar has slipped to a near two week low due to falling iron ore prices and rising expectations of an April interest rate cut.
At 1700 AEDT on Tuesday, the local unit was trading at 76.32 US cents, down from 77.23 cents on Monday.
During the afternoon it fell as low as 76.19 US cents, its weakest level since March 19.
The Australian dollar has been the worst performer among major currencies so far this week, FXCM
chief currency strategist John Kicklighter said.
“The most direct fundamental mark for the local dollar comes through rate expectations,” he said.
“With the RBA’s next meeting a week from today, the short term funds are pricing in a 71 per cent probability of a 25 basis point cut to 2.00 per cent.”
What makes the Australian currency’s poor start to the week even more remarkable is the strong performance of Chinese markets due to optimism about its economic outlook, Mr Kicklighter said.
