Australian Dollar Extends Decline Ahead of Next Week’s RBA Meeting

The Australian dollar extended its decline today, falling for the third consecutive day against the euro and for the fourth versus the US dollar and the Swiss franc.

The Aussie started a rally at the beginning of June, but it looks like the upward momentum has petered out. Analysts speculated that one of the probable reasons for that was the slump of prices for iron ore. The commodity is the biggest source of export revenue for Australia, therefore the falling prices have detrimental effect on the Australian economy.

The Reserve Bank of Australia will hold a policy meeting on October 3. Specialists do not expect the central bank to lift the main interest rate from the record low level. Such outlook also weighed on the Australian currency.

AUD/USD dropped from 0.7847 to 0.7799, though it has bounced to 0.7837 as of 16:28 GMT today. AUD/CHF declined from 0.7626 to 0.7611. EUR/AUD gained from 1.4959 to 1.5027.

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