The Australian dollar started the week falling due to concerns about economic slowdown in China as well as because of the general risk-aversion sentiment on the Forex market, which persisted since the last week.
Analysts argue that slower economic growth in China, the biggest trading partner of Australia, means falling demand for Australian exports, and this in turn means slower recovery of the Australian economy. Geopolitical risks, which were driving the FX market in the second half of the last week, persisted and continued to pull investors away from riskier assets. Domestically, two major events for the Australian dollar will be the speech of Glenn Stevens, Reserve Bank of Australia Governor, on July 22 and the release of inflation data on July 23.
AUD/USD dropped from 0.9391 to 0.9376, and AUD/JPY fell from 95.23 to 95.05 as of 17:47 GMT today.
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